New Delhi’s finance ministry has unveiled key fiscal data for the first nine months of FY26, revealing India’s fiscal deficit reached ₹8.55 lakh crore from April to December. This marks 54.5% of the ₹15.7 lakh crore target set in Budget 2025-26, signaling steady progress toward fiscal consolidation.
Compared to last year, when the deficit stood at 56.7% of the full-year goal during the same period, the current figure reflects improved fiscal discipline. Total receipts climbed to ₹25.25 lakh crore, achieving 72.2% of the annual budget estimate, while expenditures totaled ₹33.81 lakh crore, or 66.7% of the planned outlay.
Net tax collections surged to ₹19.4 lakh crore, up from ₹18.4 lakh crore a year ago, bolstered by robust economic activity. Non-tax revenues also rose sharply to ₹5.4 lakh crore from ₹4.5 lakh crore, driven by dividends and spectrum auctions.
Capital expenditure, a cornerstone of India’s growth strategy, jumped 14.5% to ₹7.9 lakh crore from ₹6.9 lakh crore last year. Investments in highways, ports, and railways underscore the government’s commitment to infrastructure-led development and job creation.
States received ₹10.38 lakh crore in tax devolution, a 15% increase year-on-year, ensuring cooperative federalism remains strong. Finance Minister Nirmala Sitharaman’s target of 4.4% of GDP for FY26 deficit—down from 4.8% in FY25 revised estimates—aims to strengthen macroeconomic stability.
This narrowing deficit reduces government borrowing, freeing up capital for private sector credit and fostering sustained growth with price stability. As India navigates global headwinds, these numbers paint an optimistic picture of fiscal health.