New Delhi, Oct 30 (IANS) India's fiscal deficit for the first six months (April-September) of the current financial year touched the Rs 7.14 lakh crore mark, which constitutes 42.1 per cent of the budget estimate for the full year, official figures released showed on Friday.

The Centre has budgeted a fiscal deficit of Rs 16.96 lakh crore for the financial year 2026-27.

Revenue receipts stood at Rs 17.57 lakh crore, which constitutes 49.7 per cent of the budget estimate. Of this, the net tax revenue was Rs 12.76 lakh crore, while non-tax revenue was Rs 4.81 lakh crore.

Net tax revenue rose to 44.5 per cent of the full-year estimate, compared with 43.3 per cent during the same period last year.

Non-tax revenue increased to Rs 4.8 lakh crore, compared with Rs 4.7 lakh crore during the same period last year.

The total government expenditure ⁠during the six-month period stood at Rs 25.5 lakh crore, compared with Rs 23 lakh crore a year earlier. Of this, capital expenditure on big-ticket projects in the highway rail and port sectors, which spur growth and create jobs, shot up to Rs 6.5 lakh crore compared with Rs 5.8 lakh crore in the first half of the previous financial year.

Total receipts stood at Rs 18.35 lakh crore during April-September, equivalent to 50.3 per cent of the full-year budget estimate. This is higher than the corresponding figure of 49.5 per cent for the previous financial year.

The Centre’s expenditure on subsidies during the first six months of the current financial year rose to Rs 2.2 lakh crore as the continuing Middle East conflict led to higher prices of petroleum products and fertilisers. The outgo was 54 per cent of the target of Rs 4.1 lakh crore for the full financial year, compared with 53 per cent in the first half of the last financial year.

Food subsidy expenditure stood at Rs 1.02 lakh crore, while urea subsidy spending reached Rs 85,585 crore. Spending on nutrient-based fertiliser subsidies was Rs 33,664 crore, while petroleum subsidies stood at Rs 1,149 crore.

The Government achieved its fiscal deficit target of 4.4 per cent in the financial year 2025-26 and has lowered the target further to 4.3 per cent of GDP for the current financial year, as part of the fiscal consolidation process.

A decline in the fiscal deficit strengthens the fundamentals of the economy and paves the way for growth with price stability. It leads to a reduction in borrowing by the government, thus leaving more funds in the banking sector for lending to corporates and consumers which leads to higher economic growth.

--IANS

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