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Budget, deficits and debt

How the Centre balances its accounts: the Budget, the fiscal deficit and public debt.

The Centre's fiscal deficit

Prelims

The fiscal deficit is the gap between the Centre's total expenditure and its receipts other than borrowing, and so equals its borrowing requirement.

The Controller General of Accounts publishes the figures at the end of each month, as a share of the Budget Estimates.
The Union Budget of 2026 targets a deficit of 4.3 per cent of GDP for the year, after 4.4 per cent the year before.
The Centre's medium term anchor has moved from the yearly deficit to the debt to GDP ratio.
Monthly figures swing with lumpy receipts such as the Reserve Bank of India's surplus transfer, credited in May.

30 Sep 2026Briefnewly addedThe deficit for April to August 2026 reached 41.9 per cent of the year's target, higher than a year earlier, as subsidy spending on fertilisers, petroleum and food rose. The Hindu, 30 Sep 2026: Centre's fiscal deficit at end-August hits 41.9% of target (opens in a new tab)
31 Aug 2026Briefnewly addedThe deficit for April to July 2026 was 26.8 per cent of the year's target, lower than a year earlier. Daily Excelsior (PTI), 31 Aug 2026: Centre's fiscal deficit touches 26.8 pc of full year target at end July (opens in a new tab)
31 Jul 2026Briefnewly addedThe deficit for the first quarter, April to June 2026, was 18.2 per cent of the year's target, as front loaded spending kept pace with receipts. ThePrint (PTI), 31 Jul 2026: Fiscal deficit touches 18.2 pc of full year target in Q1: CGA data (opens in a new tab)
30 Jun 2026Briefnewly addedThe deficit for April to May 2026 was 9.6 per cent of the year's target, held down by the Reserve Bank of India's surplus transfer of ₹2.87 lakh crore. Deccan Chronicle, 30 Jun 2026: India's fiscal deficit widens to ₹1.62 lakh crore in April to May, touches 9.6% of target (opens in a new tab)

Mains

A cess is levied for a stated purpose, so its collections are earmarked for a dedicated fund and are not shared with the States.

9 Sep 2026Briefnewly addedParliament's Public Accounts Committee flagged that the Finance Ministry had not transferred ₹9,222 crore of cess collections to the dedicated funds for which they were levied. Cess kept back from its fund weakens accountability and defeats the purpose of the levy. Mains: Because cesses are earmarked and not shared with the States, failing to transfer them to their funds weakens both accountability and the purpose of the levy. The Hindu, 9 Sep 2026: PAC flags failure to transfer ₹9,222 crore in cess collections (opens in a new tab)

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