The Central government has received ₹ 7,32,963 crore up to May in the current financial year, which is 21% of the total receipts of the corresponding budget estimate for 2025-26 and reflects the strong fiscal position of the country, according to figures released by the Finance Ministry on Monday.&nbsp;
The receipts comprise ₹3,50,862 crore tax revenue (net to Centre), ₹3,56,877 crore of non-tax revenue, and ₹25,224 crore of non-debt capital receipts.
The Centre has transferred ₹1,63,471 crore to state governments as devolution of share of taxes for this period, which is ₹ 23,720 crore higher than the previous year, the statement said.
The total expenditure incurred by the Centre is ₹7,46,126 crore (14.7% of the corresponding BE 2025-26), out of which ₹5,24,772 crore is on revenue account and ₹2,21,354 crore is on capital account for projects in the highways, ports and railway sectors.
Out of the total revenue expenditure, ₹ 1,47,788 crore is on account of interest payments and ₹ 51,253 crore is on account of major subsidies, the statement explained.
Given that the government is off to a speedy start in FY26, with May and April 2025 data showing that revenue receipts are already at 21% of the budgeted target, it is expected to meet its revenue targets this year.
With the strong emerging fiscal position in 2025-26, the government is likely to have some additional headroom to meet unforeseen expenditure such as defence, according to a Bank of Baroda report.
In its outlook for FY26, the report points out that the government has budgeted a fiscal deficit of 4.4% of GDP, assuming 10.1% growth in nominal GDP.
"We expect this growth to be around 11%, as we believe real GDP will range between 6.4-6.6% this year," the report states. This is expected to provide additional fiscal space to the government.
The income tax cut is also expected to give a boost to consumption, which in turn will support indirect tax receipts, according to economists.
On the spending front, keeping up with past trends, the government has begun front-loading of expenditure from Q1 itself, with capex at an impressive figure of over 2.2 lakh crore.
&mdash;IANS
(Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.)

Finance Ministry reports strong early revenue collection

Centre's receipts hit ₹4.63 lakh crore, 21% of FY26 target by end of May

Govt Receipts Reach 21% Of FY26 Target

Centre's receipts hit ₹4.63 lakh crore, 21% of FY26 target by end of May

July 1, 2025 | 09:17 IST