India’s fiscal deficit narrowed sharply to 0.8% of the full-year target by the end of May 2025, primarily due to a substantial Rs 2.69 lakh crore dividend received from the Reserve Bank of India, according to data from the Controller General of Accounts (CGA).
In April, the fiscal deficit had stood at 11.9% of the Budget Estimates (BE) for FY 2025-26, amounting to Rs 1.86 lakh crore.
Following the RBI's record dividend payout, the fiscal gap dropped significantly to Rs 13,163 crore, or 0.8% of the annual target, the CGA data revealed.