Fiscal deficit reaches 9.6% of FY27 target by May-end
India's fiscal deficit for the first two months of the financial year 2025-26 stood at 9.6% of the budget estimate (BE) for FY27, according to government data released on 30 June 2026. The deficit amounted to Rs 13,163 crore as of the end of May 2025, compared to the full-year target.
Details of the fiscal deficit figures
The Centre's fiscal deficit had reduced to 0.8% of the BE of 2025-26, or Rs 13,163 crore, by the end of May 2025. This indicates a slower pace of spending relative to the annual target. The data was published by the Controller General of Accounts (CGA) and reflects the government's fiscal position for the first two months of the financial year.
Impact on the economy
The fiscal deficit figure is a key indicator of the government's financial health. A deficit within the targeted range suggests disciplined spending, while a higher deficit could signal increased borrowing. The government has set a fiscal deficit target of 4.5% of GDP for FY26, aiming to consolidate public finances. The early data shows that the deficit is on track, but monitoring will continue as the year progresses.
