Fiscal Deficit Data April-May: RBI Dividend Boost Caps Fiscal Gap At Only 0.8% Of FY26 Target

India’s fiscal deficit for the first two months of the current financial year stood at Rs 13,163 crore, or 0.8% of the annual target, according to government data released today. This marks a significant improvement from the 3.1% deficit recorded during the same period last year.

The improvement was largely due to the Reserve Bank of India’s record dividend payout of Rs 2.69 lakh crore, which provided a major boost to the government’s finances. This non-tax revenue was much higher than last year’s transfer of Rs 2.11 lakh crore.

Monthly Review Of GoI Accounts Up To May 2025

The Government of India’s monthly accounts up to May 2025 show that it received a total of Rs 7,32,963 crore, which is 21% of the full-year budget estimate. This includes Rs 3,50,862 crore as net tax revenue, Rs 3,56,877 crore as non-tax revenue, and Rs 25,224 crore as non-debt capital receipts.

During this period, Rs 1,63,471 crore was given to state governments as their share of taxes, which is Rs 23,720 crore more than last year. Total government spending stood at Rs 7,46,126 crore, or 14.7% of the budget target.

Of this, Rs 5,24,772 crore was revenue expenditure and Rs 2,21,354 crore was capital expenditure. Within revenue spending, Rs 1,47,788 crore went towards interest payments, and Rs 51,253 crore was spent on major subsidies.

Also Read: GST Data: Collections Jump From Rs 11.37 Lakh Cr To Rs 22 Lakh Cr In 8 Years, Taxpayers Cross 1.51 Crore

When presenting the Union Budget for FY26, Finance Minister Nirmala Sitharaman set the fiscal deficit target at 4.4% of GDP, aiming to bring the gap below 4.5% by FY26 as part of India’s fiscal consolidation roadmap. In the last fiscal year, the deficit stood at 4.8% of GDP, matching the revised estimates.