Centre's net receipts in Q1 scale Rs 10.49 lakh crore, at 28.7 percent of full year target
New Delhi, Aug 5
The Centre has maintained the fiscal consolidation path in the first quarter of the current financial year with total receipts at Rs 10,49,243 crore, up to June 2026, which works out to 28.7 per cent of the corresponding budget estimate for 2026-27 and reflects an 11. 5 per cent increase over the corresponding figure of the previous year, official figures released on Wednesday showed.
The total expenditure incurred by the Centre, up to June 2026, is Rs 13,57,076 crore, which is 25.4 per cent of the corresponding budget estimate (BE) for 2026-27.
The Centre has received, up to June 2026 in the current financial year, Rs 6,36,576 crore tax revenue (Net to Centre), Rs 3,77,664 crore of non-tax revenue, and Rs 35,003 crore of non-debt capital receipts.
It has transferred Rs 2,63,336 crore to state governments as devolution of share of taxes by the Centre during this period, which is Rs 63,605 crore lower than the previous year.
The Centre's capital expenditure on large infrastructure projects such as highways, railways and ports has shot up by 23.7 per cent during this period to Rs 3,40,258 crore compared with the corresponding figure of Rs 2.75 lakh crore in the same period last year.
Of the total expenditure, as much as Rs 0,16,818 crore is on the Revenue Account. Out of the total revenue expenditure, Rs 3,46,414 crore is on account of interest payments while Rs 1,14,812 crore is on account of major subsidies on petroleum products such as LPG and fertilisers supplied to farmers.
India's fiscal deficit was estimated at Rs 3.1 lakh crore during the first quarter (April-June) of the current financial year, which works out to 18.2 per cent of the full-year budget estimate,
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
Reader Comments
The numbers look promising but I'm a bit concerned about the lower devolution to states - Rs 63,605 crore less than last year. States need funds for welfare schemes and rural development. I hope the central government is not squeezing states to meet its own fiscal targets at the cost of state-level programs.
Fiscal consolidation is great, but let's not forget that interest payments of Rs 3.46 lakh crore are eating up a huge chunk of revenue. That's money going to debt servicing rather than development. We need to continue reducing the debt burden so future generations aren't saddled with interest costs.
The capex push is encouraging! 🚂 With railways and ports getting more investment, our logistics costs should come down. This is crucial for Make in India to become truly competitive globally. The 23.7% increase in infrastructure spending shows long-term vision rather than short-term populism.
Good to see the government staying on track with fiscal discipline, but I wish they'd also focus on revenue expenditure efficiency. Rs 1.14 lakh crore on subsidies for LPG and fertilisers - while important for the poor and farmers, we need better targeting so that subsidies reach only those who truly need them.
The reduction in fiscal deficit leading to lower government borrowing is the real win here. More funds available for private sector lending means better credit availability for MSMEs and startups. This is the kind of macroeconomic stability that attracts foreign investment too. 🇮🇳
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