India’s Fiscal Deficit at 80.4% of FY26 Target by February, Finances Stay on Track
The Centre’s fiscal position remained stable in FY26, with the fiscal deficit reaching 80.4% of the full-year target by the end of February, according to data released by the Comptroller General of Accounts.
In absolute terms, the fiscal deficit stood at ₹12.53 lakh crore for April–February, compared to the full-year estimate of ₹15.58 lakh crore. This marks an improvement over the same period last year, when the deficit had touched 85.8% of the annual target.
Stronger Revenue Performance Supports Fiscal Health
The government’s revenue collections showed steady momentum during the period:
- Net tax revenue reached ₹21.45 lakh crore, or 80.2% of the annual target, improving from 78.3% recorded till January
- Total receipts stood at ₹27.91 lakh crore (82% of target), higher than 80.9% in the year-ago period
- Revenue receipts came in at ₹27.26 lakh crore, achieving 81.6% of the target
- Overall non-tax revenue reached 87% of the annual target
- Dividends and profits collection was strong at 96% of the target, though collections remained flat at ₹3.6 lakh crore by January
Government spending remained focused on infrastructure-led growth:
- Capital expenditure (capex) surged to ₹9.29 lakh crore, or 84.8% of the FY26 target
- This marks a sharp increase from ₹8.42 lakh crore (76.9%) recorded till January
- Key sectors included highways, railways, and ports
- Total expenditure stood at ₹40.44 lakh crore, or 81.5% of the annual target, slightly lower than 82.5% in the same period last year
- Revenue deficit came in at ₹3.89 lakh crore (73.8% of target), significantly better than 87.1% seen in the year-ago period
India’s fiscal trajectory in FY26 appears well-managed, supported by steady tax collections and disciplined spending. The lower proportion of fiscal deficit relative to last year, alongside a strong capex push, indicates a calibrated approach balancing growth and fiscal consolidation.
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