India's fiscal deficit surges in April as receipts drop, spending jumps

Key points

• New Delhi: India's fiscal deficit surged to ₹3.62 trillion in April, nearly doubling from a year earlier, driven by a sharp decline in revenue receipts and a jump in expenditure in the first month of the ongoing financial year.
• The decline in receipts followed the Centre's decision in March to cut excise duty on petrol and diesel by ₹10 per litre each to shield consumers from elevated global crude prices due to the war in West Asia, resulting in a revenue loss of nearly ₹14,000 crore.
• The fiscal deficit in April, reflecting the gap between expenditure and revenue financed by borrowing, reached 21.4% of the ₹16.96 trillion budget target for FY27, according to the latest accounts released by the Controller General of Accounts (CGA) on Monday.
• Fiscal deficit in April 2025 stood at ₹1.86 trillion.
• The deterioration was driven primarily by a steep fall in government receipts.