India's fiscal deficit stood at Rs 7.1 lakh crore during April-August, accounting for 41.9% of the full-year target for FY27, government data showed on Wednesday.
The deficit was higher than the Rs 5.98 lakh crore recorded during the corresponding period of the previous financial year. The government has budgeted for a fiscal deficit of Rs 16.96 lakh crore, or 4.3% of GDP, for FY27. The fiscal deficit measures the gap between the government's total expenditure and its receipts, excluding borrowings.
The latest numbers come as the government continues to maintain its fiscal consolidation path while keeping capital spending as a key priority. The Union Budget 2026-27 has retained fiscal consolidation as a medium-term objective, with the government aiming to put central government debt on a declining trajectory.
Total expenditure during April-August stood at Rs 20.78 lakh crore, according to the latest data. Capital expenditure, or spending on creating long-term assets such as infrastructure, stood at Rs 5.1 lakh crore during the period. The government's focus on capex remains central to its spending strategy, with the Budget continuing to allocate significant resources towards productive expenditure.
The government's total receipts during April-August stood at Rs 13.67 lakh crore. Gross tax revenue was Rs 14.32 lakh crore during the period, while non-tax revenue stood at Rs 4.54 lakh crore.
The government also transferred Rs 5.9 lakh crore to states as their share of tax devolution during the April-August period.
The government's FY27 fiscal deficit target of 4.3% of GDP follows its stated medium-term objective of fiscal consolidation. The Budget's fiscal policy framework says the government intends to pursue a fiscal stance that places central government debt on a declining path.
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