North India Statesman
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The central government has presented important data related to the financial health of the country on Monday, March 30, 2026. India’s fiscal deficit in the first 11 months (April-February) of the current financial year 2025-26 (FY26) has been ₹12.52 lakh crore. This figure is 80.4% of the revised estimate for the full year. It is a matter of relief that there has been a decline compared to the same period last year (₹ 13.47 lakh crore), which shows signs of ‘fiscal consolidation’ in the country’s economy.
Main reason for increase in deficit in February: Capital expenditure
Although the deficit has come down on an annual basis, but if we look at the data for February 2026 alone, the fiscal deficit has increased to ₹2.71 lakh crore from ₹1.77 lakh crore last year. There is a well-thought-out strategy of the government behind this surge:
Emphasis on Infrastructure: The government increased its capital expenditure (Capex) spending on infrastructure development in February. In February it increased from ₹54,500 crore to ₹87,000 crore on an annual basis.
11 month record: The government has committed a total capital expenditure of ₹9.3 lakh crore between April 2025 and February 2026, which is much more than last year (₹8.1 trillion). This shows that the government does not want to let the pace of development slow down.
Government’s ‘balle-balle’ on the revenue front
A major reason for the improvement in the financial situation is the tremendous increase in the government’s revenue:
Net Tax Collection: Tax collection increased by ₹20.2 trillion in 11 months of this financial year ₹21.5 trillion But has reached.
Non-Tax Revenue: Earnings from sources other than taxes also jumped from ₹4.9 trillion ₹5.8 trillion Has occurred.
Total Expenses: As income has increased, government expenditure has also increased, which has increased from ₹ 38.9 trillion. ₹40.4 trillion Has reached.
Rating agencies and market’s eye
The figures for the last month (March) of financial year 2026 will now be most important. Markets and international rating agencies will keep a close eye on whether the government is ₹15.58 lakh crore It succeeds in staying within the revised annual deficit target of Rs.
Experts’ Opinion: Experts believe that India is on the right direction considering the strength in tax collection and expenditure management. However, external shocks such as Middle East tensions and energy crisis may impact the fiscal mathematics slightly in the times to come.
