RBI highlights improved quality of government finances
pre-market1 source ↓written by the desknot a recommendation
- during April–September 2025
- 50% of budgeted receipts
- expenditure kept below
- 50% of annual budget estimates
The Reserve Bank of India (RBI) reported that the fiscal position of the Centre and States remained resilient in H1 2025–26, with capital expenditure at ₹11.2 lakh crore (3.1% of GDP). Governments effectively controlled revenue spending while sustaining capital investments, enhancing financial quality. This balance may support investor confidence in government bonds and fiscal stability.
• Centre collected nearly 50% of budgeted receipts during April–September 2025
• Total expenditure kept below 50% of annual budget estimates
• Strong non-tax revenues helped offset tax collection moderation
Immediate market implications could include improved sentiment towards government securities and fiscal policies.
Not investment advice. For informational purposes only.