India's Fiscal Deficit Reaches 52.6% of Annual Target by October

The fiscal deficit of the Indian central government has reached 52.6% of the annual target by the end of October 2025, according to data released by the Controller General of Accounts (CGA) on Friday. This marks an increase from 46.5% during the same period in the previous fiscal year, highlighting ongoing challenges in balancing government finances.

In absolute terms, the fiscal deficit, which represents the difference between government expenditures and revenues, amounted to approximately ₹8,25,144 crore during the April to October period of 2025-26. For the full fiscal year, the government has set a target for the deficit at 4.4% of the Gross Domestic Product (GDP), equating to ₹15.69 lakh crore.

According to the CGA, total government receipts reached ₹18 lakh crore by October, which accounts for 51.5% of the Budget Estimates (BE) for the fiscal year 2025-26. This figure includes ₹12.74 lakh crore generated from net tax revenue, ₹4.89 lakh crore from non-tax revenue, and ₹37,095 crore from non-debt capital receipts.

Notably, tax devolution to Indian states has increased significantly, with ₹8,34,957 crore transferred from April to October. This represents an increase of ₹1,11,981 crore compared to the same period last year, indicating a positive trend in state funding.

Total government expenditure reached ₹26.25 lakh crore, which is 51.8% of the annual estimate. Out of this total, ₹20 lakh crore was allocated for revenue expenditures, while ₹6.17 lakh crore was designated for capital expenditures.

Within the revenue spending, ₹6.73 lakh crore was allocated for interest payments, and ₹2.46 lakh crore was spent on major subsidies, as reported by the CGA.

The ongoing fiscal situation reflects the government's efforts to manage its budget amid complex economic conditions, and the substantial growth in state transfers suggests a commitment to supporting regional economies. The Indian government will continue to monitor its fiscal health as it navigates the challenges ahead.