Fiscal Deficit
Centre’s domestic financing nearly doubles to ₹3.6 trillion in April, easing capital spending pressure
Strong small savings inflows and residual domestic financing provide a cushion for the government's FY27 spending, reducing its reliance on market borrowings.
3 min read2 Jun 2026India's fiscal deficit surges in April as receipts drop, spending jumps
The fiscal deficit in April, reflecting the gap between expenditure and revenue financed by borrowing, reached 21.4% of the ₹16.96 trillion budget target for FY27, according to the latest accounts released by the Controller General of Accounts (CGA) on Monday.
3 min read1 Jun 2026Useful money: RBI's ₹2.9 trillion surplus transfer to the government struck a delicate balance
The Reserve Bank of India's record payout to the central government adds to the economy’s cushion. Minimal fiscal slippage would suit its own policy ends too. But weak capital flows could yet cloud the risk horizon.
2 min read26 May 2026The rupee’s future depends on some factors beyond India’s control but policy should focus on the rest
India's currency has been falling since before the Gulf war began, but its impact on India’s balance of payments has added to the downward pressure. The end of today’s energy crisis would bring relief, but till then, we must do what it takes to attract capital.
4 min read18 May 2026India’s fertilizer subsidy reaches ₹2.17 trillion in FY26 due to West Asia war, may rise by a fifth in FY27
As the war in West Asia disrupts supply chains, India's fertilizer subsidy may exceed ₹2.17 trillion in FY27. This trend raises concerns about fiscal discipline and food inflation.
4 min read5 May 2026Eight states peg fiscal gap at 3%; UP revenue-surplus, Punjab most indebted
Eight Indian states, including Uttar Pradesh and Bihar, have set their fiscal deficit at 3% or below GSDP, indicating improved budget discipline. States like Punjab and Himachal Pradesh struggle with high liabilities.
4 min read30 Apr 2026Govt spent ₹54,067 crore more than Parliament approved in FY23 to repay debt, says panel
The excess spending occurred despite the government obtaining supplementary grants during the financial year, raising concerns over the accuracy of budget estimates and expenditure control, said the PAC report
3 min read1 Apr 2026India’s Apr-Feb fiscal deficit hits 80% of FY26 target
With a downward revision in nominal GDP, the fiscal deficit for FY26 is now expected to come in at around 4.5%, slightly higher than the revised estimate of 4.3%.
2 min read30 Mar 2026India's April–Jan fiscal deficit hits ₹9.81 trillion, or 63% of full-year target
The revenue deficit for April-January narrowed to ₹1.96 trillion, or 37.3% of the revised estimate for FY26, sharply lower than 72.4% utilisation in the corresponding period last year, CAG data showed.
3 min read27 Feb 2026Budget promises vs reality: Underspending widens across ministries
Beyond the spectacle of Budget Day, the true challenge lies in execution of allocated spending. Several ministries have consistently struggled to utilize their allocated funds.
4 min read12 Feb 2026Wait for it…
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