In absolute terms, the fiscal deficit last financial year stood at ₹15.19 lakh crore, against the revised estimate of ₹15.58 lakh crore.
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“This shows the government’s commitment to fiscal discipline despite the global headwinds, such as the Iran war,” a senior official told ET.
Net tax receipts touched ₹26.23 lakh crore last fiscal, or 98.1% of the target, while non-tax revenue touched ₹6.79 lakh crore, exceeding the goal of ₹6.68 lakh crore. Total revenue receipts in FY26 were to the tune of ₹33.86 lakh crore or 99.4% of the target.
Meanwhile, total government expenditure was to the tune of ₹49.05 lakh crore, or 98.8% of the FY26 target. Capital and revenue spending remained 97.6% and 99.1% of the respective targets, helping the government offset the marginal shortfall in receipts and control the deficit.
Capital expenditure last fiscal stood at ₹10.69 lakh crore against the revised estimate (RE) of ₹10.96 lakh crore, while revenue spending touched ₹38.36 lakh crore, compared with the RE of ₹38.69 lakh crore.Also Read: GDP growth likely eased in January-March quarter on softer external demand
April deficit
The government’s fiscal position started the current financial year on a not-so-encouraging note in April, with the fiscal gap touching 21.4% of the annual target, against 11.9% a year before. This is driven by a drop in both tax and non-tax revenues while revenue and capital expenditures saw a jump.
FY26 net market borrowing cut
The data showed the Centre trimmed its net market borrowing to ₹10.06 lakh crore in FY26 from the RE of ₹10.40 lakh crore, likely aiming to soothe the bond market. It also raised its offtake from the National Small Savings Fund to ₹4.86 lakh crore, against the RE of ₹3.72 lakh crore. These two mostly fund the fiscal deficit.