The April-June quarter of FY27 fiscal deficit widened to ₹3.08 lakh crore, and it is 18.2% of the full-year fiscal deficit target, the Controller General of Accounts (CGA) said.
It was a small increase compared to the same time last year when the fiscal deficit was 17.9% of the annual target.
Deficit Doubles From May
And the fiscal deficit grew much as in the previous month.
- June (April–June cumulative): ₹3.08 lakh crore (18.2% of FY27 target).
- May (April–May cumulative): ₹1.62 lakh crore (9.6% of FY27 target).
The gap is growing because government spending is rising and global crude oil prices are increasing.
Rising crude prices are putting pressure on us
Because of geopolitical tensions in the Middle East, the government is spending more than ever, and revenue and spending are diverging.
Energy supply remained stable, but oil prices remained high, which caused India's fiscal position to be affected during the first quarter of this year.
Capital expenditure is still rising
The Centre was focused on infrastructure and development spending.
The total capital expenditure reached ₹3.40 lakh crore, equivalent to 27.8% of the full-year target for FY27 (from 24.5% in previous years).
This also marks an improvement from May when capital expenditure had reached ₹2.51 lakh crore, or 20.5% of the annual target.
Tax Collections Improve
The government's revenue collections were healthy during the quarter.
Net tax collections were ₹6.36 lakh crore, 22.2% of the annual target and 19% higher than in the same period last year.
The tax collections helped to support government revenues despite increased spending.
Revenue Deficit Narrows Sharply
The Centre's revenue deficit shrank to ₹2,578 crore, down from ₹68,985 crore recorded in May.
Revenue expenditure primarily includes:
- Salaries.
- Pensions.
- Interest payments.
- Subsidies.
- Administrative expenses.
The sharp reduction indicates better management of recurring government expenditure during the period.
Government Receipts and Spending
During the first three months of FY27:
- Total expenditure: ₹13.50 lakh crore (25.4% of annual target).
- Total receipts: ₹10.49 lakh crore (28.7% of annual target).
Both figures were slightly better than at the same time in the previous financial year.
Revenue receipts also reached ₹10.14 lakh crore; 28.7% of the annual target.
Non-Tax Revenue Remains Strong
Non-tax revenue continued to provide considerable support to government finances.
The collections reached ₹3.77 lakh crore and amounted to 56.7% of the annual goal.
A large contributor was dividends and profits, which amounted to ₹3.02 lakh crore, or about 77% of the full-year target.
Non-tax collections were also good, but their growth moderated compared to May when collections were around ₹3.50 lakh crore.
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