Government of India Receives ₹7.33 Lakh Crore in First Two Months of FY26; Expenditure at ₹7.46 Lakh Crore
By Shishta Dutta | Updated at: Oct 14, 2025 06:12 PM IST
New Delhi, July 3, 2025 – The Ministry of Finance has released the monthly review of accounts for the Government of India up to May 2025, marking the first two months of fiscal year 2025–26. The data reflects a strong start to the fiscal cycle, with total receipts at ₹7.33 lakh crore and total expenditure reaching ₹7.46 lakh crore.
Key Financial Highlights (April–May FY26)
In the first two months of FY26 (April–May), the Government of India collected ₹7.33 lakh crore in total receipts, accounting for 21% of the Budget Estimates (BE) for the year. This includes ₹3.51 lakh crore in net tax revenue, ₹3.57 lakh crore in non-tax revenue, and ₹25,224 crore through non-debt capital receipts.
| Particulars | Amount (₹ crore) | % of BE 2025–26 |
|---|---|---|
| Total Receipts | 7,32,963 | 21.0% |
| • Tax Revenue (Net to Centre) | 3,50,862 | — |
| • Non-Tax Revenue | 3,56,877 | — |
| • Non-Debt Capital Receipts | 25,224 | — |
| Total Expenditure | 7,46,126 | 14.7% |
| • Revenue Expenditure | 5,24,772 | — |
| • Capital Expenditure | 2,21,354 | — |
| Interest Payments (within Revenue) | 1,47,788 | — |
| Major Subsidies (within Revenue) | 51,253 | — |
| Devolution to States | 1,63,471 | — |
The tax devolution to states stood at ₹1.63 lakh crore, ₹23,720 crore higher than the same period last year, indicating stronger tax mobilisation and transfer adherence. India’s fiscal deficit stood at ₹13,163 crore, or 0.8% of the full-year estimate, significantly lower than the 3.1% recorded during the same period last year.
Strategic Overview
- Revenue Generation: Non-tax revenue outpaced net tax collections in the first two months, largely driven by dividends, spectrum fees, and other central inflows.
- Expenditure Mix: Of the ₹7.46 lakh crore spent, nearly 30% went toward interest and subsidies, reflecting the structural fiscal obligations of the Union Budget.
- Fiscal Implications: With receipts at 21% and expenditure at 14.7% of Budget Estimates (BE) 2025–26, the early fiscal position suggests prudent cash flow management and headroom for capital deployment later in the year.
Outlook
As the Centre proceeds with upcoming capital-intensive programmes and subsidy rationalisation, early fiscal trends reflect improved revenue buoyancy and higher-than-usual non-tax mobilisation. Continued monitoring of subsidy outflows and capital formation will be critical to achieving the fiscal deficit target.
REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2140807
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