Fiscal Deficit Increases 12-Fold to Rs 1.62 Trillion in April-May, Now Makes Up For 9.6% of Budget Estimate

New Delhi: Fiscal deficit saw sharply increased to Rs 1.62 trillion in April-May, seeing a 12-fold rise when compared to figures from last year, reported Business Standard. The whopping Rs 1.62 trillion fiscal deficit of the government made up for 9.6% of the Budget Estimate (BE) of Rs 16.96 trillion, revealed data released by the Controller General of Accounts on Tuesday (June 30).

The meteoric rise in fiscal deficit could be understood from the fact that in April-May 2025, it was only 0.8 per cent of BE.

At the same time, the revenue receipts of the government declined to Rs 6.99 trillion in April-May from Rs 7.08 trillion during the same period last year.

Both tax and non-tax revenue declined by 1% year-on-year (Y-o-Y), while total receipts declined 2% to Rs 7.19 trillion in April-May, accounting for nearly 20% of BE.

The government’s excise duty collections decreased by almost 20% to Rs 2.12 trillion in April-May, reflecting the cuts in special additional excise duty on petrol and diesel late March. Earlier, the government had reduced excise duty on both petrol and diesel fuel by Rs 10 per litre.

As reported by The Wire earlier this year, the Union budget had revealed that both capital and revenue receipts for the government of India had fallen.

Rs 16.4 lakh crore was the budget estimate for this year for capital receipts, but the revised estimate, is down to Rs 16. 2 lakh crore. Revenue receipts have fallen more significantly that that. From an expected Rs 34.2 lakh crore, the receipts are down to Rs 33.4 lakh crore.

Analysts and economists have said that this shortfall in government’s ability to raise resources has resulted in considerable underspends in major schemes vital for well being, like drinking water, sanitation and others.

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