India’s central government deficit rose only slightly in September, while the Controller General of Accounts (CGA) put the first-half shortfall at 42.1% of the annual estimate, a key measure against the FY27 target.
At September’s end, the CGA recorded a cumulative deficit of ₹714,413 crore, equal to 42.1% of the ₹1,695,768 crore FY27 estimate. The comparable share one year earlier was 36.5%. The CGA says its monthly accounts are provisional and unaudited, and that the timing of receipts and spending can affect in-year figures.
The cumulative balance was ₹710,249 crore at August’s end and ₹714,413 crore at September’s end. Comparing successive month-end balances yields a ₹4,164 crore increase for September, against a ₹255,105 crore increase in August. Corporate tax receipts reached ₹301,025 crore in September, 26.8% above the ₹237,339 crore recorded a year earlier. Income-tax receipts fell 9.8% to ₹135,297 crore from ₹150,001 crore.
Capital spending reached ₹654,547 crore by September, or 53.6% of its annual allocation. The government had spent ₹646,010 crore on interest payments, equal to 46% of that provision. Subsidy disbursements totaled ₹222,905 crore, about 54% of the annual amount, compared with ₹202,367 crore at the same point a year earlier.
ANI reported that Goldman Sachs Research expects the government to keep the FY27 deficit target at 4.3% of GDP, most likely by reprioritizing spending. The report said higher fertilizer subsidies or additional fuel-tax relief could make the target harder to meet if global commodity prices remain elevated.
ICRA Chief Economist Aditi Nayar told Business Standard that meeting the target “may prove challenging.” She said the government would need to reduce its revenue deficit in the second half of FY27 compared with the same period a year earlier.
