India's fiscal deficit in Q1 FY27 surges to ₹3.1L crore
What's the story
India's fiscal deficit widened to ₹3.1 lakh crore in the first quarter of FY27, according to data released by the Controller General of Accounts (CGA) today. The figure accounts for 18.2% of the full-year budget estimate, and is higher than the ₹2.8 lakh crore recorded during April-June last year. The increase indicates a rise in government spending amid strong revenue collections.
Budget goals
Government's fiscal deficit target for FY27
For FY27, the government has set a fiscal deficit target of ₹16.96 lakh crore, or 4.3% of India's gross domestic product (GDP).
The target is in line with the government's broader fiscal consolidation roadmap.
The first quarter's finances were supported by strong tax collections, with net tax receipts rising to ₹6.4 lakh crore from last year's ₹5.4 lakh crore during the same period.
Revenue growth
Non-tax revenue saw a marginal increase
Non-tax revenue also saw a marginal increase, reaching ₹3.8 lakh crore from ₹3.7 lakh crore last year.
These receipts usually comprise dividends from public sector enterprises and the Reserve Bank of India (RBI), spectrum-related income, and various fees collected by the government.
On the expenditure front, total spending increased to ₹13.6 lakh crore in Q1 FY27, up from ₹12.2 lakh crore during the same period last year.
Investment boost
Significant jump in capital expenditure
Capital expenditure, a key driver of public investment, saw a significant jump during the quarter.
Spending on infrastructure and other asset-creating projects stood at ₹3.4 lakh crore as against ₹2.75 lakh crore in the same period last year.
The increase is in line with the government's strategy of using public investment to bolster long-term growth and improve logistics while encouraging private sector investment.