- The Union Government's fiscal deficit reached 18.2% of the FY27 target in June, totaling Rs 3.08 lakh crore
- Fiscal deficit doubled from May, which was at 9.6% of the FY27 target and Rs 1.62 lakh crore
- Capital expenditure rose to Rs 3.4 lakh crore, 27.8% of the FY27 target, up from 24.5% last year
The Union Government's fiscal deficit has reached 18.2% of the fiscal 2027 target and came in at Rs 3.08 lakh crore for month of June, according to data released by the Controller General of Accounts. In the year-ago period, India's fiscal deficit had reached 17.9% of the annual target.
The deficit has widened 2X on a month-on-month basis, compared to May, when it had reached 9.6% of the fiscal 2027 target and came in at Rs 1.62 lakh crore.
The Iran war has severely impacted the crude prices in the last few months, in turn widening the gap between expenditure and revenue for the nation.
During May, net tax mop-up reached nearly Rs 6.36 lakh crore, or 22.2% of the yearly target. In the year-ago period net tax collections touched 19% of the FY27 target.
Capital expenditure grew to Rs 3.4 lakh crore or 27.8% of the FY27 target. In the year-ago period, capex had reached 24.5% of the annual target. By last month, the govt. had spent 2.51 lakh crore or 20.5% of the annual target.
The Centre's revenue deficit in the April-May period narrowed to Rs 2,578 crore from Rs 68,985 crore in May. Revenue expenditure includes regular costs like salaries, pensions, interest payments, and subsidies.
The total expenditure during the first three months of this fiscal stood at Rs 13.5 lakh crore, which is 25.4% of the FY27 estimated target, slightly higher than 24.1% it had reached in the year-ago period.
The government's total receipts for April-May stood at Rs 10.49 lakh crore, which is 28.7% of the full-year target. In the comparable year-ago period, the mop-up stood lower at 26.9%.
Revenue receipts which are lead by tax collections reached 28.7% of the annual target in the first three months as they stood at Rs 10.14 lakh crore.
Notably, the non-tax collection revenue has already reached 56.7% its annual target as it came in at Rs 3.77 lakh crore, of which collection of dividends and profits reached 77% of the annual target.
However, growth in the non-tax collections remained relatively muted as compared to the month of May, where it stood at 3.5 lakh crore. In the year-ago period, non-tax collections had touched 64% of the FY26 target.
Collection of dividends and profits came in at Rs 3.02 lakh crore. In the comparable period of the last fiscal, it had reached 87% of the annual target.
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