Centre's spending crosses ₹25.49 lakh crore in first half of 2026-27; half of full-year receipts already in
Latest government accounts show receipts at 50.3% of the Budget estimate and spending at 47.7% by September. Interest payments took over a third of revenue spending.
The Union government collected just over half of what it expects to receive this financial year in the first six months, while its spending ran slightly behind schedule, according to accounts for April to September 2026 released by the Finance Ministry on Friday.
The headline numbers
For the period April to September 2026, the first half of 2026-27:
- Total receipts: ₹18,35,422 crore, or 50.3% of the 2026-27 Budget estimate
- Total expenditure: ₹25,49,835 crore, or 47.7% of the Budget estimate
Receipts were made up of:
- Tax revenue (net to Centre): ₹12,76,088 crore
- Non-tax revenue: ₹4,80,732 crore
- Non-debt capital receipts (such as loan recoveries and disinvestment): ₹78,602 crore
Spending was split between ₹18,95,288 crore on the revenue account, which covers salaries, interest, subsidies and day-to-day running costs, and ₹6,54,547 crore on the capital account, which covers investment in roads, railways, defence equipment and other assets.
What the numbers tell us
The gap. Subtracting receipts from expenditure, the Centre spent about ₹7.14 lakh crore more than it received in the first half. This gap is broadly what the fiscal deficit measures, and it is financed by borrowing. The ministry's release did not state the fiscal deficit as a share of the full-year target, so we have not calculated one.
Receipts ahead of spending. Receipts reaching 50.3% of the annual estimate at the halfway mark, while spending is at 47.7%, means collections are on pace while spending has some catching up to do. Government spending typically rises in the second half of the year, especially in the final quarter.
Interest is the biggest single cost. Interest payments came to ₹6,46,010 crore, about 34% of all revenue spending. That is money spent servicing past borrowing rather than on new programmes.
Subsidies. Major subsidies, mainly on food, fertiliser and petroleum, cost ₹2,22,905 crore in the six months.
More money for states
The Centre transferred ₹6,99,409 crore to state governments as their share of central taxes during the period. That is ₹67,658 crore more than in the same period last year.
Under the Constitution, a share of the taxes the Centre collects must be passed on to states. The share is set by the Finance Commission. Larger transfers give states more room to spend on health, education, police and local infrastructure, which are largely state responsibilities.
Why these monthly numbers matter
The Controller General of Accounts publishes these figures every month, usually at the end of the following month. Economists and markets watch them to judge whether the government is likely to meet its deficit target for the year. A government that overshoots its target typically has to borrow more, which can push up interest rates across the economy.
The next update, covering accounts up to October, is due at the end of November.
Correction, 31 October 2026: An earlier version of this story said the accounts were released on Thursday. They were released on Friday, 30 October.
Sources
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