In a testament to disciplined fiscal management, India’s central government posted a fiscal deficit of Rs 9.8 lakh crore through January 2026, representing 63% of the FY 2025-26 goal. The Finance Ministry’s monthly statement offers granular insights into the nation’s public finances.
Receipts aggregated Rs 27.08 lakh crore, or 79.5% of revised estimates, driven by strong tax performance at Rs 20.94 lakh crore (net to Centre), non-tax revenues of Rs 5.57 lakh crore, and minor non-debt capital receipts of Rs 57,129 crore. Devolution to states hit Rs 11.39 lakh crore, a 6% YoY increase, underscoring resource sharing commitments.
Expenditures totaled Rs 36.90 lakh crore (74.3% of RE), with revenue spending at Rs 28.47 lakh crore—including Rs 9.88 lakh crore for debt servicing and Rs 3.54 lakh crore for subsidies—and capital expenditure at Rs 8.42 lakh crore, prioritizing infrastructure.
Finance Minister Nirmala Sitharaman’s roadmap targets a further dip to 4.3% GDP deficit in FY 2026-27, after securing 4.4% this year. ‘This path embodies fiscal prudence without stifling growth,’ she noted in her budget presentation on February 1.
As global headwinds persist, these metrics affirm India’s macroeconomic stability. Stakeholders await February-March data to gauge final-year momentum, with implications for credit ratings and investment flows.