India's Fiscal Deficit Reaches 18.2% of Full-Year Target in the First Quarter of FY27

India's central government ran a fiscal deficit of ₹3,07,833 crore in the first quarter of fiscal year 2026-27 (April-June 2026), equal to 18.2% of the full-year target, according to monthly accounts data from the Controller General of Accounts (CGA) released around July 31, 2026.

The government has budgeted a full-year fiscal deficit of ₹16.96 lakh crore, or 4.3% of GDP, for FY27. Reaching 18.2% of that target within the first three months is broadly in line with typical early-year spending patterns, though the underlying mix shows expenditure growing faster than revenue.

Net tax revenue for the quarter came in at ₹6.36 lakh crore, 22.2% of the full-year budget estimate. Total government expenditure rose to roughly ₹13.6 lakh crore, up from about ₹12.2 lakh crore in the same quarter last year. Capital expenditure — spending on infrastructure such as roads, ports, and railways — increased to about ₹3.4 lakh crore, up from roughly ₹2.75 lakh crore a year earlier, suggesting the government front-loaded investment spending even as it manages the deficit path toward its FY27 target.