Centre’s fiscal deficit at end-August hits 41.9% of 2026-27 target on higher subsidy spends
India's fiscal deficit reached 41.9% of the annual target by August 2026, driven largely by increased subsidy spending on fertilizers and food. Despite this, capital expenditure has also seen a faster growth rate compared to the previous year.
Why it matters
Fiscal deficit trends are critical indicators of a nation's economic health and government spending priorities.
An increase in subsidy spending, particularly on fertilisers, has led to the Centre’s fiscal deficit reaching 41.9% of its budgeted target for 2026-27 as of August 2026, compared to 38.1% at this point last year.
Data released by the Controller General of Accounts on Wednesday shows that the Centre’s total revenue stood at ₹13.7 lakh crore in the April to August 2026 period of this financial year, while its total expenditure stood at ₹20.8 lakh crore during the same period.
Total receipts were largely in line with the trend of last year, making up 37.5% of the budget estimates for the year as of August 2026 as compared to 36.7% in the same period of last year.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in