New Delhi: The Government of India began FY 2026-27 with total receipts of ₹2.13 lakh crore in April, representing 5.8% of the budgeted receipts for the year. Tax revenue net to the Centre accounted for the largest share at ₹1.78 lakh crore, while non-tax revenue contributed ₹24,293 crore and non-debt capital receipts, primarily loan recoveries, added ₹9,894 crore.
During the month, the Centre transferred ₹87,779 crore to state governments as their share of taxes, an increase of ₹6,044 crore over the corresponding period of the previous year, reflecting continued fiscal support to states.
Government expenditure in April stood at ₹5.75 lakh crore, amounting to 10.8% of the annual budget estimate. Revenue expenditure constituted ₹3.85 lakh crore, while capital expenditure reached ₹1.90 lakh crore, indicating a strong emphasis on asset creation and infrastructure investment at the start of the fiscal year. Interest payments accounted for ₹1.10 lakh crore, representing a significant portion of revenue expenditure, while major subsidies amounted to ₹43,633 crore.
For the full financial year 2025-26, provisional accounts indicate that the government achieved total receipts of ₹33.86 lakh crore, equivalent to 99.4% of the revised estimate. Tax revenue net to the Centre reached ₹26.23 lakh crore, demonstrating the continued strength of tax collections. Non-tax revenue contributed ₹6.79 lakh crore, while non-debt capital receipts totalled ₹83,757 crore, including ₹24,617 crore from loan recoveries and ₹59,140 crore from miscellaneous capital receipts.
The Centre transferred ₹13.93 lakh crore to state governments as tax devolution during FY 2025-26, exceeding the previous year’s transfer by ₹1.06 lakh crore. This substantial increase underscores the government's commitment to fiscal federalism and enhanced resource availability for states.
Total expenditure for FY 2025-26 stood at ₹49.05 lakh crore, achieving 98.8% of the revised expenditure estimate. Revenue expenditure amounted to ₹38.36 lakh crore, while capital expenditure reached ₹10.69 lakh crore. The high level of capital expenditure highlights the government's continued focus on long-term economic growth through public investment. Interest payments totalled ₹12.43 lakh crore, reflecting the significant cost of servicing public debt, while major subsidies amounted to ₹4.54 lakh crore.
Overall, the fiscal data indicate strong revenue realization, near-complete utilization of revised expenditure targets, increased transfers to states, and sustained emphasis on capital expenditure. At the same time, interest payments remain a major fiscal commitment, underscoring the importance of maintaining fiscal discipline while supporting growth-oriented public investment.
(Cover photo by Aakash Dhage on Unsplash)