The Government of India collected ₹2,12,679 crore in total receipts during April 2026, equivalent to 5.8 per cent of the Budget Estimate (BE) for 2026–27, according to a finance ministry statement released on Monday, 1 June. The figure comprises ₹1,78,492 crore in net tax revenue, ₹24,293 crore in non-tax revenue, and ₹9,894 crore in non-debt capital receipts from loan recoveries.

States' Share and Devolution

State governments received ₹87,779 crore as their devolution share of central taxes during the same period — a rise of ₹6,044 crore over the corresponding figure from the previous year. The increase signals a stronger early-year transfer flow to states, which rely heavily on central devolution for their own expenditure planning.

Centre's Expenditure in April

Total government expenditure stood at ₹5,74,892 crore, representing 10.8 per cent of the corresponding BE for 2026–27. Of this, ₹3,85,151 crore was on the revenue account and ₹1,89,831 crore on the capital account. Within revenue expenditure, ₹1,09,562 crore went toward interest payments, while ₹43,633 crore was on account of major subsidies.

Subsidy Pressure from Middle East Conflict

Subsidy outgo is expected to climb through the current financial year, driven by rising petroleum and fertiliser costs linked to the Middle East conflict and disruptions to the Strait of Hormuz — a chokepoint through which 20 per cent of the world's oil and gas exports pass under normal conditions. The disruption has pushed global LPG prices to ₹1,200 per cylinder, according to a senior petroleum ministry official.

Under the Pradhan Mantri Ujjwala Yojana (PMUY), however, beneficiary households continue to receive 14.2 kg LPG cylinders at ₹613, with the government absorbing a subsidy of ₹587 per cylinder — effectively covering half the market price. General households are paying ₹913 per cylinder. The official noted that the subsidy is shielding low-income households from price shocks triggered by the ongoing conflict.

India vs Neighbours: LPG Price Comparison

India's administered LPG prices remain significantly lower than those in neighbouring countries. Families in Sri Lanka pay ₹1,241 per cylinder, those in Nepal pay ₹1,207, and households in Pakistan pay ₹1,046 — all higher than even India's general household rate of ₹913. The comparison underscores the scale of the fiscal commitment the Centre is making to keep domestic energy affordable amid global supply stress.

What to Watch

With subsidy costs set to rise and capital expenditure already at 10.8 per cent of BE in the very first month, the pace of fiscal consolidation will be closely watched. Any prolonged disruption to Hormuz shipping lanes could further widen the subsidy bill, testing the government's ability to stay within its deficit targets for 2026–27.