Centre records 38.1% fiscal deficit at Rs 5.98 trillion in April-August

The central government has recorded the fiscal deficit at 38.1 per cent of the full-year target at the end of August, according to data released by the Controller General of Accounts (CGA) on Tuesday.

The fiscal deficit, or gap between the government’s expenditure and revenue, was Rs 5.98 trillion in the April-August period of the FY2025-26.

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The Centre has received a total of Rs 12,82,709 crore, which is 36.7 per cent of the Budget Estimates (BE) for FY 2025-26. This included Rs 8,10,407 crore from tax revenue (net to Centre), Rs 4,40,332 crore from non-tax revenue, and Rs 31,970 crore from non-debt capital receipts.

The Centre also transferred Rs 5,30,148 crore to State Governments as their share of taxes, Rs 74,431 crore higher than the corresponding period last year.

On the expenditure side, the government spent Rs 18,80,862 crore, accounting for 37.1 per cent of the BE. Of this, Rs 14,49,283 crore was incurred on the revenue account, while Rs 4,31,579 crore was spent on the capital account.

Within the revenue expenditure, interest payments amounted to Rs 5,28,668 crore and major subsidies stood at Rs 1,50,377 crore.

The latest fiscal data reflects both higher transfers to states and a steady pace of expenditure in the first five months of the financial year.

According to the CGA, Capital expenditure, or spending on building physical infrastructure, stood at Rs 4.3 trillion, up from Rs 3 trillion a year ago.