India’s fiscal deficit in Apr almost doubles YoY, at 21.4% of FY27 aim

Agencies

New Delhi

The central government's fiscal deficit in April stood at ₹3.623 trillion, accounting for 21.4% of the Budget estimate of ₹16.958 trillion for the current financial year, according to data released by the Controller General of Accounts (CGA) on Monday. The fiscal gap for the month was nearly double the year-ago figure of ₹1.863 trillion.

In April 2025, the fiscal deficit had accounted for 11.9% of the FY26 target. The revenue deficit for April, at ₹1.824 trillion, was nearly four times higher than the ₹490.01 billion recorded a year ago. This sharp widening of the fiscal gap was driven by a 23.5% surge in total expenditure, which climbed to ₹5.750 trillion from ₹4.656 trillion year-ago, coupled with a severe slowdown in inflows.

Total receipts fell 23.8% to ₹2.127 trillion during the month, down from ₹2.793 trillion a year ago. Capital expenditure rose 18.8% to ₹1.898 trillion against ₹1.598 trillion in the previous year, while interest payments escalated by 17.2%.  

The contraction in total receipts was led primarily by a 63.8% plunge in non-tax revenue to ₹243 billion, compared to ₹672 billion in the same period last year. Gross tax revenue also slowed slightly to ₹2.663 trillion from ₹2.715 trillion year-ago, while state tax devolution stood at ₹878 billion against ₹817 billion. Additionally, a sharp fall in other receipts to ₹64 billion from ₹214 billion a year ago compounded the revenue slowdown.