India’s fiscal deficit for the first half of 2025 (April–September) reached ₹5.73 trillion ($65.19 billion), accounting for 36.5% of the full-year fiscal target, according to data released by the Controller General of Accounts (CGA).

This figure marks a rise compared to the 29% of the budget estimates recorded during the same period in FY25. The fiscal deficit represents the gap between the government’s total expenditure and total revenue, excluding borrowings.

In absolute terms, the deficit stood at ₹5,731.23 billion for the first six months of the financial year. The central government aims to limit the fiscal deficit to 4.4% of GDP in FY26, translating to around ₹15.69 trillion.

On the revenue side, the government’s total receipts stood at ₹16.95 trillion, equivalent to 49.6% of the budgeted estimate for FY26. This includes ₹12.29 trillion in net tax revenue, ₹4.6 trillion in non-tax revenue, and ₹347 billion in non-debt capital receipts.

The data indicates healthy revenue collection in the first half of the fiscal year, reflecting steady economic activity and robust tax compliance. However, the fiscal balance will depend on the second-half expenditure trends, especially related to infrastructure, welfare, and defense spending.

Conclusion:

India’s fiscal deficit data for H1 2025 underscores a moderate pace of spending and healthy revenue flow in the early half of FY26. While the deficit remains within manageable limits, maintaining fiscal discipline in the latter half of the year will be crucial to meet the 4.4% GDP target. Continued focus on revenue efficiency and expenditure management will determine whether India can sustain its growth momentum without breaching fiscal prudence.