India: public finances

What is India's fiscal deficit?

The Union Government's fiscal deficit was ₹7,10,249 crore in April to August 2026, 41.9% of the budget estimate for the year of ₹16,95,768 crore, according to the Controller General of Accounts. A year earlier, the deficit to August was 38.1% of that year's budget estimate. The Union Budget 2026-27 targets a fiscal deficit of 4.3% of GDP for the full year.

The fiscal deficit is total spending minus receipts other than borrowing. CGA notes that the monthly figure is not a guide to the full-year deficit, because receipts and spending do not arrive evenly through the year. The revised estimate for 2025-26 was 4.4% of GDP.

Official sources: CGA: Union Government Accounts at a Glance, August 2026 · PIB: Highlights of Union Budget 2026-27

How big is India's budget for 2026-27?

The Union Budget 2026-27 estimates total expenditure of ₹53.5 lakh crore and non-debt receipts of ₹36.5 lakh crore, according to the Ministry of Finance budget highlights, tabled on 1 February 2026. The Centre's net tax receipts are estimated at ₹28.7 lakh crore, and gross market borrowing at ₹17.2 lakh crore.

The fiscal deficit is estimated at 4.3% of GDP, and the debt-to-GDP ratio at 55.6% of GDP, down from 56.1% in the revised estimate for 2025-26. Budget estimates are revised a year later and the final outturn is in the accounts audited by the Comptroller and Auditor General. State governments have their own budgets on top of these figures.

Official sources: PIB: Highlights of Union Budget 2026-27

How much tax does the Indian government collect?

The Union Government received ₹8,37,921 crore in tax revenue (net to the Centre) from April to August 2026, according to the Controller General of Accounts monthly review, released on 30 September 2026. Total receipts were ₹13,67,709 crore, 37.5% of the budget estimate, including ₹4,54,549 crore of non-tax revenue. Over the same months, ₹5,90,391 crore was passed to state governments as their share of taxes.

Net tax revenue is what the Centre keeps after the states' share. The budget estimate for net tax receipts in 2026-27 is ₹28.7 lakh crore. Goods and services tax collections are reported separately each month by the Ministry of Finance.

Official sources: PIB: Monthly Review of Accounts of Union Government, August 2026

How much does India spend on interest payments?

The Union Government spent ₹5,14,810 crore on interest payments from April to August 2026, out of total revenue expenditure of ₹15,68,009 crore, according to the Controller General of Accounts monthly review released on 30 September 2026. Major subsidies cost ₹1,87,037 crore over the same period.

Interest is the largest single item of the Union Government's revenue spending, because of the debt built up over past deficits. The ratio of interest to revenue receipts is often used to judge the cost of debt. Full-year interest estimates are in the Budget at a Glance document published with the Union Budget.

Official sources: PIB: Monthly Review of Accounts of Union Government, August 2026

How much does India spend on capital expenditure?

The Union Government spent ₹5,09,949 crore on its capital account from April to August 2026, 41.7% of the budget estimate of ₹12,21,821 crore, according to the Controller General of Accounts. A year earlier, capital spending to August was 38.5% of that year's estimate.

Capital expenditure covers spending on assets such as roads, railways and defence equipment, and loans to states. The budget highlights for 2026-27 describe effective capital expenditure separately, as it includes grants to states for building assets. Monthly figures are on a cash basis and are uneven through the year.

Official sources: CGA: Union Government Accounts at a Glance, August 2026

What is India's government debt?

84.3% of GDP: that is general government gross debt in India for 2025, according to the IMF. Its high point since 2005 was 2020, at 90.4% of GDP; its low point was 2014, at 67.6% of GDP. South Asia median: 90.5% of GDP; India is 4th highest of 6. Worldwide: 37th of 185.

What is India's fiscal deficit?

In 2025, general government net lending or borrowing in India was -7.4% of GDP, according to the IMF, which is a deficit. The peak was -3.7% of GDP in 2007 and the low -13.1% of GDP in 2020. South Asia median: -2.9% of GDP; India is 6th highest of 6. Of 188 countries with 2025 data, 171st highest.

What is India's government revenue?

The latest figure from the IMF, for 2025, is 20.9% of GDP. The peak was 22.4% of GDP in 2007 and the low 18.6% of GDP in 2020. Across South Asia the middle value was 20.3% of GDP, and India placed 3rd highest of 6. Of 187 countries with 2025 data, 123rd highest.

What is India's government spending?

According to the IMF, general government spending in India was 28.2% of GDP in 2025. Its high point since 2005 was 2020, at 31.7% of GDP; its low point was 2006, at 25.6% of GDP. South Asia median: 24.9% of GDP; India is 3rd highest of 6. Worldwide: 104th of 186.

How much tax does India collect?

The IMF puts central government tax revenue in India at 6.9% of GDP in 2022. That is the lowest since at least 2005. Worldwide: 113th of 117.

What is India's defence spending?

According to SIPRI, military spending in India was 2.3% of GDP in 2025. Since 2005 it has ranged from 2.2% of GDP (2024) to 3.1% of GDP (2009). Of 149 countries with 2025 data, 43rd highest.