Fresh data from New Delhi reveals India’s fiscal deficit climbed to Rs 9.8 lakh crore by the close of January 2026, hitting 63% of the budgeted figure for 2025-26. This update from the Finance Ministry highlights impressive revenue mobilization amid controlled spending.
The government garnered Rs 27.08 lakh crore in receipts—79.5% toward annual targets—comprising Rs 20.94 lakh crore in net taxes, Rs 5.57 lakh crore non-taxes, and Rs 57,129 crore non-debt capitals. Tax shares to states jumped to Rs 11.39 lakh crore, exceeding prior year by Rs 65,588 crore.
Outlays reached Rs 36.90 lakh crore (74.3% of RE): Rs 28.47 lakh crore revenue (with Rs 9.88 lakh crore interest and Rs 3.54 lakh crore subsidies) and Rs 8.42 lakh crore capital, fueling development projects.
In her visionary budget speech, FM Nirmala Sitharaman pledged to shrink the deficit to 4.3% of GDP next year, post the current 4.4% success. This strategy harmonizes expansionary policies with deficit reduction, she affirmed.
Market watchers applaud the glide path, which could unlock lower borrowing costs and higher growth. With fiscal close in sight, India’s prudent stance sets a strong precedent for sustainable prosperity.