How Much Has the Government Earned by May? Insights on 21% of Total Receipts for 2025-26
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Synopsis
The Central government's earnings have reached an impressive Rs 7,32,963 crore by May, covering 21% of the projected receipts for the fiscal year 2025-26. This article delves into the significance of these figures and what they mean for India's fiscal health and future expenditures.
Key Takeaways
- The Central government earned Rs 7,32,963 crore by May 2025.
- This represents 21% of total receipts for the budget estimate of 2025-26.
- Tax revenue is Rs 3,50,862 crore.
- Non-tax revenue amounts to Rs 3,56,877 crore.
- Total expenditure is Rs 7,46,126 crore.
New Delhi, June 30 (NationPress) The Central government has amassed Rs 7,32,963 crore until May in the current fiscal year, accounting for 21 percent of the total receipts projected in the budget estimate for 2025-26. This figure signifies the robust fiscal health of the nation, as reported by the Finance Ministry on Monday.
The receipts include Rs 3,50,862 crore in tax revenue (net to Centre), Rs 3,56,877 crore from non-tax revenue, and Rs 25,224 crore in non-debt capital receipts.
During this period, the Centre transferred Rs 1,63,471 crore to state governments as a share of tax devolution, which is Rs 23,720 crore more than the previous year, according to the statement.
The total expenditure by the Centre is Rs 7,46,126 crore (14.7 percent of the corresponding BE 2025-26), with Rs 5,24,772 crore allocated for revenue accounts and Rs 2,21,354 crore dedicated to capital accounts for projects in highways, ports, and railways.
From the total revenue expenditure, Rs 1,47,788 crore is for interest payments and Rs 51,253 crore for major subsidies, as explained in the statement.
With a strong start in FY26, the government's revenue receipts show that it has already achieved 21 percent of the budgeted target, indicating a positive outlook for meeting revenue goals this year.
The emerging fiscal position in 2025-26 suggests the government may have additional capacity to manage unforeseen expenditures, such as defense, according to a report from Bank of Baroda.
The fiscal outlook for FY26 highlights a projected fiscal deficit of 4.4 percent of GDP, predicated on a 10.1 percent growth in nominal GDP.
"We anticipate this growth to be closer to 11 percent, as we expect real GDP to range between 6.4-6.6 percent this year," the report suggests, indicating potential extra fiscal space.
The anticipated income tax reduction is likely to enhance consumption, thereby bolstering indirect tax receipts, according to economists.
On the expenditure front, consistent with previous trends, the government has initiated front-loading of expenditures from Q1, with capital expenditure exceeding Rs 2.2 lakh crore.
Point of View
I affirm that the Central government's fiscal performance thus far in FY26 represents a robust trajectory. The 21% achievement in revenue receipts signals a promising outlook, empowering the government to not only meet its targets but also address unforeseen expenditures effectively.
NationPress
30/06/2025
Frequently Asked Questions
What is the total earnings of the Central government up to May 2025?
The Central government has earned Rs 7,32,963 crore up to May 2025.
What percentage of total receipts does this represent?
This amount constitutes 21% of the total receipts projected in the budget estimate for 2025-26.
How much has the government transferred to state governments?
The Centre has transferred Rs 1,63,471 crore to state governments as tax devolution.
What is the total expenditure incurred by the Centre?
The total expenditure by the Centre is Rs 7,46,126 crore.
What are the projections for the fiscal deficit?
The government has budgeted a fiscal deficit of 4.4% of GDP for FY26.
