India's fiscal deficit reaches 4.55 lakh crore rupees through July, narrowing from year-earlier period

India's fiscal deficit for the first four months of this fiscal year through July stood at 4.55 lakh crore rupees, or 26.8% of annual estimates, government data showed today.

The fiscal deficit narrowed from 29.9% reported in the comparable year-earlier period.

Total receipts stood at Rs 13.07 lakh crore rupees, while overall expenditure in April to July was at Rs 17.62 lakh crore rupees. They were 35.8% and 32.9% of this fiscal year's budget target.

Total receipts in the year-earlier period was at 31.3%% of estimate, while expenditure widened from 30.9% a year earlier.

Revenue receipts stood at Rs 12.68 lakh crore rupees, of which tax revenue was 8.45 lakh crore rupees and non-tax revenue was 4.23 lakh crore rupees.

Non-tax revenue typically includes dividends from public sector enterprises and the Reserve Bank of India, spectrum-related income and various fees collected by the government.

Non-tax revenue jumped as the Reserve Bank of India approved a dividend of Rs 2.87 lakh crore to the central government, up from Rs 2.69 lakh crore transferred last year. This will help the central government reduce its fiscal deficit.

Revenue deficit was at 43,645 crore rupees or 7.4% of the fiscal year's budget target, data showed.

While presenting the Union Budget for FY27, Finance Minister Nirmala Sitharaman pegged the fiscal deficit target at 4.3% of GDP for this financial year, maintaining the government's fiscal consolidation path and its commitment to keeping the budget gap under control.

On the expenditure side, New Delhi spent about 1.54 lakh crore rupees on major subsidies such as food, fertilisers and petroleum. This was 37% of the annual aim, wider than 30% of budgeted expenditure in the comparable period last year.