Jan fiscal deficit narrows; 63% of FY26 target met by January

India’s fiscal deficit for the April–January period of FY26 stood at ₹9.81 lakh crore, or 63% of the revised annual target of ₹15.58 lakh crore, as per the latest government data revealed on Friday, February 27.

The deficit during the first ten months of the financial year was lower compared with the same period last year, when it stood at ₹11.70 lakh crore.

For January alone, the fiscal deficit came in at ₹1.25 lakh crore, significantly narrower than the ₹2.56 lakh crore deficit recorded in January of the previous year.

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The revised full-year fiscal deficit target for FY26 has been pegged at ₹15.58 lakh crore. With 63% of that target already utilised by January-end, the government’s fiscal math for the final two months of the financial year will be closely watched by markets and rating agencies.

Earlier, data for April–December had already indicated improving fiscal consolidation. The Centre’s deficit narrowed 6.4% year-on-year to ₹8.56 lakh crore in the first nine months of FY26, accounting for 54.5% of the full-year Budget estimate of ₹15.69 lakh crore, compared with 56.7% in the same period last year.

The improvement was supported by stronger revenue collections, with total receipts rising to ₹25.25 lakh crore, while gross tax revenue and non-tax revenue both recorded growth.