Fiscal deficit hits 41.9% of FY27 target by end-August 2026
Why in the news
The Controller General of Accounts (CGA) released Union government finance data on 30 September 2026. It shows that the Centre had already used up 41.9% of its annual fiscal deficit target after five months of FY27.
Key facts
- The fiscal deficit for April-August 2026 was Rs 7,10,249 crore (about Rs 7.1 lakh crore).
- The full-year FY27 target is Rs 16.96 lakh crore, which is 4.3% of GDP.
- Net tax revenue came to roughly Rs 8.38 lakh crore.
- Total expenditure was about Rs 20.78 lakh crore.
| Indicator (Apr-Aug) | FY27 (share of BE) | Year-ago (share of BE) |
|---|---|---|
| Fiscal deficit | 41.9% | 38.1% |
| Net tax revenue | 29.2% | 28.6% |
| Total expenditure | 38.9% | 37.1% |
About fiscal deficit
The fiscal deficit is the gap between the government’s total expenditure and its total receipts excluding borrowings. It therefore shows how much the Centre must borrow in a year. It is usually expressed as a percentage of GDP, and BE means budget estimate.
Exam angle
- Remember the pair of numbers: 41.9% of BE this year against 38.1% a year earlier.
- The annual target of 4.3% of GDP equals Rs 16.96 lakh crore.
- The data source is the CGA, which publishes monthly figures on the Union government’s accounts.
- Both revenue and spending shares are higher than last year, but the deficit share has risen faster than either.