Fiscal Deficit at Rs 4.68 Lakh Crore in April-July; Non-Tax Revenue Surges on RBI Dividend
August 29, 2025
India’s fiscal deficit rose to ₹4.68 lakh crore, or 29.9% of FY26 estimates, in April–July, widening from 17.2% a year ago. Strong RBI dividend boosted non-tax revenue, while subsidies stood at ₹1.13 lakh crore. Govt eyes 4.4% fiscal deficit target amid capex push.
India’s fiscal deficit for the first four months of the current financial year touched Rs 4.68 lakh crore, accounting for 29.9% of the full-year target, according to data released by the Controller General of Accounts on Friday. The gap widened compared with the 17.2% reported in the same period a year ago.
During April–July, the Centre’s total receipts stood at Rs 10.95 lakh crore, which is 31.3% of the budgeted estimate for FY26. Expenditure in the same period was Rs 15.63 lakh crore, or 30.9% of the target. A year earlier, receipts were at 31.9% of estimates, while expenditure was 27% of the year’s projection.
Revenue receipts amounted to Rs 10.65 lakh crore, comprising Rs 6.61 lakh crore from taxes and Rs 4.03 lakh crore from non-tax sources. Tax collections represented 23.3% of the budgeted target, lower than 27.7% achieved during the corresponding months of FY25. In contrast, non-tax revenue surged to 69.2% of the estimate, compared with 55.3% in the previous year.
A major boost to non-tax revenue came from the Reserve Bank of India’s record dividend transfer of Rs 2.69 lakh crore to the government, significantly higher than the Rs 2.11 lakh crore payout in the previous year. This transfer is expected to ease pressure on the fiscal deficit.
During April–July, the Centre’s total receipts stood at Rs 10.95 lakh crore, which is 31.3% of the budgeted estimate for FY26. Expenditure in the same period was Rs 15.63 lakh crore, or 30.9% of the target. A year earlier, receipts were at 31.9% of estimates, while expenditure was 27% of the year’s projection.
Revenue receipts amounted to Rs 10.65 lakh crore, comprising Rs 6.61 lakh crore from taxes and Rs 4.03 lakh crore from non-tax sources. Tax collections represented 23.3% of the budgeted target, lower than 27.7% achieved during the corresponding months of FY25. In contrast, non-tax revenue surged to 69.2% of the estimate, compared with 55.3% in the previous year.
A major boost to non-tax revenue came from the Reserve Bank of India’s record dividend transfer of Rs 2.69 lakh crore to the government, significantly higher than the Rs 2.11 lakh crore payout in the previous year. This transfer is expected to ease pressure on the fiscal deficit.