Fiscal consolidation: Govt meets FY26 fiscal deficit target of 4.4% of GDP

The Centre achieved its fiscal deficit target of 4.4 per cent of GDP for 2025-26, according to provisional data released by the Controller General of Accounts (CGA) on Monday, marking an improvement from the previous financial year’s deficit level, PTI reported.The fiscal deficit for FY26 was estimated at Rs 15,68,936 crore in the Budget and later revised down to Rs 15,58,492 crore in the revised estimates presented by Finance Minister Nirmala Sitharaman in Parliament in February.According to the CGA data, the government collected Rs 33.42 lakh crore in revenue during 2025-26, amounting to 98.8 per cent of the Revised Estimates (RE).The Centre’s total expenditure stood at Rs 49.64 lakh crore during the financial year, also accounting for 98.8 per cent of the revised target.Fiscal deficit is the gap between the government’s total expenditure and its total receipts excluding borrowings, and is a key indicator of fiscal health.The fiscal deficit for 2024-25 had stood at 4.8 per cent of GDP.