The Indian government’s fiscal deficit — the gap between how much it earns and how much it spends — reached 17.9% of its full-year target by the end of June 2025. This is much higher than the 8.4% deficit recorded in the same period last year, according to data from the Controller General of Accounts (CGA).
What the Numbers Say:
- Fiscal Deficit (April–June 2025): ₹2.8 lakh crore
- Full-year fiscal deficit target: ₹15.69 lakh crore or 4.4% of GDP
By June 2025, the government had received ₹9.41 lakh crore, which is 26.9% of the expected income for the year. This included:
- ₹5.4 lakh crore from tax collections
- ₹3.73 lakh crore from non-tax sources
- ₹28,018 crore from other sources (like sale of assets)
Spending Highlights:
- Total expenditure: ₹12.22 lakh crore (24.1% of the yearly plan)
- ₹9.47 lakh crore spent on regular activities (like salaries, interest payments, etc.)
- ₹2.75 lakh crore spent on capital projects (like building infrastructure)
Of this, the government:
- Paid ₹3.86 lakh crore as interest on loans
- Spent ₹83,554 crore on subsidies
Other Key Points:
- The government gave ₹3.27 lakh crore to state governments, ₹47,439 crore more than last year, as tax revenue sharing increased.
- Capital spending by the Centre went up by 52% compared to last year, though it was still slightly less than the first quarter of FY24.
Expert Insight:
Aditi Nayar, Chief Economist at ICRA, said that weak direct tax collections in June affected overall tax earnings, but this was due to a tough comparison with last year. She also mentioned that the increase in capital spending may have helped boost investments and could positively impact the GDP growth for the quarter.
Read more: HUL Q1 FY25: Net Profit Rises 5.97% to ₹2,768 Cr, Revenue Grows 5.15%
