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Govt meets 37% of FY27 capex target as April-July spending jumps 30%

Capital spending rose 30 per cent year-on-year to Rs 4.51 trillion in April-July, while the fiscal deficit fell nearly 3 per cent to Rs 4.55 trillion

Krity Ambey 3 min read Last Updated : Aug 31 2026 | 7:48 PM IST

The Centre has spent 37 per cent of its capital expenditure target in the first four months of the current financial year, data released by the Controller General of Accounts (CGA) on Monday showed. The government has set a capital expenditure target of ₹12.22 trillion in the Budget for 2026-27 (FY27).

The government’s capital spending jumped 30 per cent year-on-year (Y-o-Y) to ₹4.51 trillion in April-July. In the corresponding period of the last financial year, the government had met 31 per cent of the capital expenditure target.

Despite the sharp rise in capital spending, the government maintained a firm grip on its finances, with the fiscal deficit at ₹4.55 trillion in April-July, down nearly 3 per cent Y-o-Y.

At ₹4.55 trillion, the deficit accounted for 27 per cent of the Budget Estimate (BE) of ₹16.96 trillion for FY27. The government’s fiscal deficit was 30 per cent of the target in April-July last year.

The government’s total expenditure rose nearly 13 per cent to ₹17.62 trillion, which included ₹13.11 trillion in revenue expenditure, up nearly 8 per cent Y-o-Y.

Centre's FY27 fiscal deficit touches 26.8% of full year target at end July

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