Photo: The Economic TimesPhoto: The Economic TimesIndia
Centre saves about ₹55,000 crore as FY26 spending undershoots revised estimates
Lower-than-planned spending gives the government room to absorb a shortfall in direct tax collection while staying on its fiscal path.
What happened
The Centre's spending in 2025-26 undershot its revised estimates by about ₹55,000 crore, a senior official said. The Economic Times The shortfall was largely due to slower-than-expected capital expenditure and unspent funds across ministries. The Economic Times Ministries of water and sanitation, and housing and urban affairs were unable to use even their revised lower estimates. The Economic Times The savings are expected to help the government absorb some shortfall in direct tax collection and any additional expenditure under certain heads. The Economic Times
Around it
In February, while presenting the 2026-27 budget, the Centre had already cut its expenditure estimate for the year ending March 31 to ₹49.64 lakh crore from the original ₹50.65 lakh crore. The Economic Times Gross tax collections grew a subdued 6.1 per cent during April-September this year, slightly slower than the full-year growth factored into the budget estimates. The Indian Express Capital expenditure, which grew 23.7 per cent in the first quarter, slowed to 2.8 per cent in the second quarter. The Indian Express Disinvestment proceeds are expected to exceed expectations, driven by the IDBI stake sale. The Indian Express
What comes next
The exact savings will be reflected when the Centre publishes the annual numbers on May 31. The Economic Times
Sources
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