Indian Govt Receives ₹7.33 Lakh Crore Revenue in First Two Months of FY 2025-26
India collected Rs. 7.33 lakh crore in revenue during April-May 2025, with spending at Rs. 7.46 lakh crore, reflecting healthy early fiscal performance.
Revenue
Revenue
The Government of India has published its monthly accounts for the period up to May 2025, providing a clear picture of the country’s finances for the first two months of the financial year 2025-26.
According to the Press Information Bureau report, the government has received a total of Rs. 7,32,963 crore, which is 21% of the total budget estimate (BE) for 2025-26. This amount includes Rs. 3,50,862 crore as tax revenue (net to the Centre), Rs. 3,56,877 crore as non-tax revenue, and Rs. 25,224 crore as non-debt capital receipts, which generally includes recovery of loans and disinvestment proceeds.
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During this period, the government has transferred Rs. 1,63,471 crore to state governments as their share in central taxes. This is Rs. 23,720 crore higher than the amount transferred during the same period last year, showing the government’s commitment to support states in meeting their expenditure needs.
On the expenditure side, the government has spent a total of Rs. 7,46,126 crore up to May 2025, which is 14.7% of the total budget estimate for the year. Out of this, Rs. 5,24,772 crore was spent under revenue expenditure, which includes day-to-day expenses like salaries, pensions, and subsidies, while Rs. 2,21,354 crore was spent under capital expenditure, which is used for creating assets like roads, railways, and other infrastructure.
The data also shows that Rs. 1,47,788 crore has been spent on interest payments to service the government’s borrowings, while Rs. 51,253 crore has been spent on major subsidies during this period. Subsidies are provided to support sectors like food, fertilisers, and fuel to reduce the burden on the common man.
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Impact: The government’s healthy revenue collection of Rs. 7.33 lakh crore in two months signals strong economic activity and fiscal stability. Higher fund transfers to states will support welfare and local development. The Rs. 51,253 crore spent on subsidies shows the government’s commitment to supporting food, fuel, and fertiliser affordability for citizens, while Rs. 1.47 lakh crore on interest payments reflects the need to manage borrowing costs carefully to avoid high debt servicing in the future.
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