New Delhi, February 27: India’s fiscal deficit stood at ₹9.8 lakh crore by the end of January 2026, accounting for 63% of the total target for the financial year. According to data released by the Finance Ministry, the government received ₹27,08,654 crore by January 2026, which is 79.5% of the revised estimate for the entire financial year 2025-26.
This includes ₹20,94,218 crore in tax revenue (net amount received by the Centre), ₹5,57,307 crore in non-tax revenue, and ₹57,129 crore in non-debt capital receipts. During this period, the government transferred ₹11,39,767 crore to state governments as part of tax shares, which is ₹65,588 crore more than the previous year.
The total expenditure by the government during this period was ₹36,90,061 crore, representing 74.3% of the revised total expenditure estimate for the financial year 2025-26. Out of this, ₹28,47,780 crore was spent on revenue items and ₹8,42,281 crore on capital items.
Of the total revenue expenditure, ₹9,88,302 crore was allocated for interest payments and ₹3,54,861 crore for major subsidies. Finance Minister Nirmala Sitharaman has projected a fiscal deficit of 4.3% of Gross Domestic Product (GDP) for 2026-27.
In her budget speech on February 1, she stated that the government has fulfilled its commitment to reduce the fiscal deficit to 4.4% in the 2025-26 budget and aims to further decrease it to 4.3% while maintaining fiscal prudence. She emphasized that this target reflects a balance between sustaining economic momentum and stabilizing public finances.
The fiscal deficit is the difference between the government’s total expenditure and total revenue.