India Fiscal Deficit at Rs 7.15 Lakh Crore in H1 FY27

India recorded a fiscal deficit of Rs 7.15 lakh crore in the first half of FY27, covering April to September. The shortfall represents 42.1 per cent of the government's deficit target for the year.

The deficit stood at Rs 5.7 lakh crore during the same months of the previous fiscal year, highlighting a wider gap this year.

Net tax receipts reached Rs 12.8 lakh crore in the first half, compared with Rs 12.3 lakh crore a year earlier. The growth rate was 4.06 per cent on a yearly basis.

Non-tax revenue touched Rs 4.8 lakh crore in April-September, against Rs 4.7 lakh crore in the corresponding period last year. This translates to annual growth of 2.12 per cent.

Total government spending in the first half was Rs 25.5 lakh crore, up from Rs 23 lakh crore in the same period of FY26. The increase stands at 10.8 per cent.

Capital expenditure rose nearly 12 per cent year on year, reaching Rs 6.5 lakh crore from Rs 5.8 lakh crore in the first half of FY26.

The government has set the fiscal deficit target for FY27 at Rs 16.96 lakh crore, which is 4.3 per cent of GDP.

Earlier this month, the government had indicated it would borrow Rs 7.86 lakh crore during the second half of FY27. The borrowing plan includes Rs 15,000 crore in sovereign green bonds. These will be raised through 23 weekly auctions, according to the Finance Ministry.

The ministry added that total borrowing through dated securities for the full year is expected to reach roughly Rs 15.9 lakh crore, once second-half borrowing is factored in.

In the Union Budget, Finance Minister Nirmala Sitharaman had proposed borrowing Rs 17.2 lakh crore for the current fiscal year.