The fiscal deficit amounted to Rs 15.19 lakh crore in FY26, equivalent to 97.5% of the revised annual target, according to government data released on Monday.
The revenue deficit, which measures the gap between revenue expenditure and revenue receipts, came in at 1.55% of GDP for FY26, reflecting continued improvement in the quality of government finances as a greater share of borrowing is directed towards capital spending.
Data released by the Controller General of Accounts (CGA) showed net tax revenues rose to Rs 26.23 lakh crore in FY26, while non-tax revenues increased to Rs 6.79 lakh crore. Total revenue receipts stood at Rs 33.02 lakh crore, or 98.8% of the revised estimate.
Total expenditure during the year was Rs 49 lakh crore, with revenue expenditure at Rs 38.36 lakh crore. Capital expenditure rose to about Rs 10.7 lakh crore from Rs 10.18 lakh crore a year earlier, highlighting the government’s continued focus on infrastructure-led growth
The Reserve Bank of India (RBI), earlier this month, declared a record surplus transfer of Rs 2.87 lakh crore to the government for FY26, which is notably lower than North Block’s budget estimates for dividend receipts this fiscal. RBI’s balance sheet expanded by 20.61% to Rs 91.97 lakh crore at the end of March 31, 2026.
The country may struggle to meet its fiscal deficit target of 4.3% in the current financial year as the West Asia crisis drives up spending on food, fertiliser and fuel subsidies. It might hit 4.5% of GDP as the government’s policy response to the West Asia conflict could strain public finances, research firm BMI said in April.