EconomyMonday, 28 September 2026·The Hindu - Economy

Centre fiscal deficit reaches 41.9% of 2026-27 target by August 2026 on higher subsidy spending

The Centre’s fiscal deficit touched 41.9% of the 2026-27 target by August 2026 due to higher subsidy spending.

Key highlights

Direct fact

By August 2026, the Centre’s fiscal deficit had reached 41.9% of the budgeted target for 2026-27, according to data released by the Controller General of Accounts on Wednesday.

Key specifics

  • Total revenue for April to August 2026 stood at ₹13.7 lakh crore.
  • Total expenditure during the same period was ₹20.8 lakh crore.
  • Total receipts were 37.5% of the budget estimates in August 2026.
  • Total capital expenditure reached 41.7% of the budgeted target of ₹12.2 lakh crore.
  • Higher subsidy spending on fertilisers, petroleum and food distribution pushed the deficit ratio up.

Exam lens

Question type: Budget and fiscal deficit MCQ; 41.9%, ₹13.7 lakh crore, ₹20.8 lakh crore, ₹12.2 lakh crore, Controller General of Accounts. TNPSC may ask what drove the fiscal deficit and what the capital expenditure figure was.

fiscal deficitbudgetController General of Accountssubsidy

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