By August 2025, the Centre had mobilised ₹12.83 lakh crore (36.7% of Budget Estimates), while spending ₹18.81 lakh crore (37.1% of BE). The near-identical pace of receipts and expenditure signals a controlled fiscal position five months into FY 2025-26.
Tax revenues contributed ₹8.10 lakh crore, while non-tax revenues of ₹4.40 lakh crore - buoyed by PSU dividends and spectrum receipts - lifted overall inflows. Transfers to states rose to ₹5.30 lakh crore, giving states greater fiscal room but narrowing the Centre’s space.
On spending, ₹4.32 lakh crore went to capital outlays (23% of total), indicating a healthy early-year push on infrastructure. Yet interest payments (₹5.29 lakh crore) and subsidies (₹1.50 lakh crore) consumed over 45% of revenue expenditure, underlining the weight of committed costs.
With fiscal progress at one-third of the annual plan, the challenge ahead lies in sustaining revenue buoyancy while ensuring subsidy and interest outflows do not crowd out capital spending, critical for growth and fiscal discipline.
What is Budget Estimate (BE)? → The government’s projected receipts and expenditures for the financial year, presented in the Union Budget. Actuals are compared against BE to track fiscal performance.
Follow the full release here: PIB Press Release on Monthly Accounts, August 2025
