Centre’s fiscal deficit narrows to 63% of annual target at January-end

The Centre’s fiscal deficit stood at Rs 9.8 lakh crore at the end of January, accounting for 63 per cent of the full-year Budget target for 2025-26, according to data released by the Controller General of Accounts (CGA), PTI reported.The deficit level was lower compared with 74.5 per cent of the annual target recorded during the same period a year earlier, indicating an improved fiscal position during the current financial year.The government has estimated the fiscal deficit for 2025-26 at 4.4 per cent of GDP, equivalent to Rs 15.58 lakh crore.According to the monthly accounts released by the CGA, the Centre received Rs 27.08 lakh crore, or 79.5 per cent of the Revised Estimates (RE) for total receipts in 2025-26, up to January.The receipts comprised Rs 20.94 lakh crore of net tax revenue to the Centre, Rs 5.57 lakh crore of non-tax revenue and Rs 57,129 crore of non-debt capital receipts.Data showed that Rs 11.39 lakh crore was transferred to state governments as their share of taxes, which is Rs 65,588 crore higher than the amount devolved during the corresponding period last year.Total expenditure by the government during the period stood at Rs 36.9 lakh crore, or 74.3 per cent of the corresponding Revised Estimate for FY26. Of this, Rs 28.47 lakh crore was revenue expenditure, while Rs 8.42 lakh crore was capital expenditure.Within revenue expenditure, Rs 9.88 lakh crore was spent on interest payments and Rs 3.54 lakh crore on major subsidies, the CGA data showed.