Country’s fiscal deficit
This time also there is a huge pressure on India’s economy. In the first five months of FY 2025-26 (April to August), the fiscal deficit of the country has reached ₹ 5.98 lakh crore. The special thing is that the figure that the government has set for the whole year is its 38.1%.
Due to the economic strictness like US President Donald Trump’s ‘tariff policy’, India’s economy is getting pressure anyway. Last year, this deficit was around 4.35 lakh crore rupees at the same time, that is, this time the deficit has been about 1.63 lakh crore rupees.
Trouble due to decline in tax collection
This time the biggest concern of the government is less than tax. The government’s net tax collection was ₹ 8.1 lakh crore, which is less than ₹ 8.7 lakh crore last year. The biggest reason for this is that this year the government has given income tax exemption to those who income up to ₹ 12 lakh this year. This definitely brought relief to the general public, but the government’s pocket became a little empty.
On the other hand, non-tax revenue i.e. the income from dividend, interest or government undertakings to the government has increased slightly. It increased from last year’s ₹ 3.3 lakh crore to ₹ 4.4 lakh crore this time. Due to this lead, the government’s total earnings reached ₹ 12.8 lakh crore, which is better than last year’s ₹ 12.2 lakh crore.
Tremendous boom in spending
This time a lot of money was spent on the government’s capital expense such as road, railway and infrastructure. Between April and August this year, ₹ 4.3 lakh crore has been spent on this item, while last year this expenditure was only ₹ 3 lakh crore. This is 38.5% of this year’s capital expenditure target.
If the deficit increases then what next?
The government has fixed a loss of ₹ 15.7 lakh crore for the whole year, which is 4.4% of the country’s GDP. This is a little less than last year’s ₹ 16.9 lakh crore, but by looking at the figures of April-August, it seems that the road ahead can be difficult.