India's fiscal deficit in FY26 stands at 4.4% of GDP
What's the story
India's fiscal deficit for the financial year ending March 31, 2026, stood at 4.4% of its gross domestic product (GDP). The figure matches the government's revised estimate and indicates that public finances remained stable despite increased spending commitments. The official data released today showed a fiscal deficit of ₹15.19 lakh crore in FY26, which is about 97.5% of the revised annual target set earlier this year.
Financial performance
Revenue deficit recorded at 1.55% of GDP
The revenue deficit, which indicates the difference between revenue expenditure and receipts, was recorded at 1.55% of GDP. This shows that the government is trying to improve its spending quality by allocating more borrowing toward capital expenditure. The fiscal year also saw strong government revenues with net tax receipts rising to ₹33 lakh crore from ₹30.87 lakh crore in FY25, while non-tax revenues rose to ₹6.8 lakh crore from ₹5.31 lakh crore last year.
Spending increase
Total government expenditure increased in FY26
Total government expenditure also increased, reaching ₹49 lakh crore in FY26 as compared to ₹47.16 lakh crore in the previous fiscal year. Separately, the government accounts for April revealed that the fiscal deficit for the first month of FY27 stood at 21.4% of the full-year Budget estimate. The Centre has planned a further reduction in this ratio while continuing its focus on infrastructure investment and growth-oriented spending strategies.