Fiscal deficit narrows by 0.8% of full-year target in April-May FY26

(RNS, 01-07-25) The country's fiscal deficit for the first two months (April and May 2025) of FY26 narrowed sharply to Rs 13,163 crore, or just 0.8% of the annual target, according to the government data released on Monday.

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This is an improvement from the Rs 50,600 crore deficit—equivalent to 3.1% of the full-year estimate—recorded during the same period last year.

As per the financial ministry data, the total receipts between April and May rose to Rs 7.33 lakh crore. Last year, it was Rs 5.73 lakh crore for the same period. Gross tax collections stood at Rs 5.15 lakh crore, compared to Rs 4.60 lakh crore a year earlier. Non-tax revenue more than doubled to RS 3.57 lakh crore, largely due to the RBI's record Rs 2.69 lakh crore dividend transfer in May.