India’s fiscal health shows steady growth in first seven months of 2025-26
The central government’s finances for the first seven months of 2025-26 show steady progress in both revenue and spending. By October, receipts reached Rs 18 lakh crore, covering over half of the annual budget estimate. Meanwhile, expenditures climbed to Rs 26.25 lakh crore, also meeting more than half of the year’s target.
Up to October 2025, the Centre collected Rs 18 lakh crore, accounting for 51.5% of the total budgeted receipts for the fiscal year. A significant portion of this revenue was shared with states, with Rs 8,34,957 crore transferred as tax devolution during the same period.
Expenditure during April-October stood at Rs 26.25 lakh crore, or 51.8% of the annual estimate. Of this, Rs 20 lakh crore went towards revenue expenses, including Rs 6.73 lakh crore for interest payments and Rs 2.46 lakh crore for major subsidies. Capital spending reached Rs 6.17 lakh crore.
The fiscal deficit for the first seven months was recorded at Rs 8,25,144 crore. This figure represents 52.6% of the full-year target, which is set at Rs 15.69 lakh crore—or 4.4% of GDP for 2025-26.
The government’s fiscal position remains on track, with receipts and spending both exceeding half of their annual targets by October. The deficit stands at just over half of the projected amount, aligning with the 4.4% GDP estimate for the year.
