India’s fiscal place remained robust within the first two months of FY26, due to a pointy rise in income collections and a document dividend payout from the Reserve Financial institution of India. The fiscal deficit stood at simply Rs 13,163 crore as of the top of Might, solely 0.8% of the full-year goal of Rs 15.69 lakh crore. A yr in the past, the deficit for a similar interval was a lot larger at Rs 50,600 crore.
Complete receipts throughout April–Might rose to Rs 7.33 lakh crore, in comparison with Rs 5.73 lakh crore in the identical interval final yr. This improve was pushed by robust development in each tax and non-tax income.
Gross tax income stood at Rs 5.15 lakh crore, up from Rs 4.60 lakh crore a yr earlier. Non-tax income jumped to Rs 3.57 lakh crore from Rs 2.52 lakh crore. This development was largely as a result of RBI’s Rs 2.69 lakh crore dividend payout on the finish of Might. This single switch is 27% larger than final yr’s Rs 2.11 lakh crore. It has considerably strengthened the federal government’s money place.
The dividend windfall is predicted to assist scale back the fiscal deficit by 20–30 foundation factors. This might probably deliver it under the 4.4% goal for FY26. Final yr, the federal government ended the fiscal yr with a deficit of 4.8 per cent.
Expenditure throughout the two months rose to Rs 7.46 lakh crore from Rs 6.24 lakh crore in the identical interval final yr. Capital expenditure noticed a notable leap to Rs 2.21 lakh crore, up from Rs 1.44 lakh crore. This displays the federal government’s continued push for infrastructure and long-term development.
Spending on main subsidies, together with meals, fertiliser, and petroleum, stood at Rs 51,252 crore in April–Might. That’s 13% of the revised full-year goal—barely decrease than 14% throughout the identical interval final yr.
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