New Delhi, June 30 -- India's fiscal deficit reached 9.6% of the full-year target at the end of May, mainly due to a record Rs.2.87 trillion dividend received from the Reserve Bank of India.

The fiscal deficit, reflecting the gap between expenditure and revenue financed by borrowing, had touched 21.4% of the Rs.16.96 trillion budget estimate (BE) for FY27 in April.

Following the RBI's dividend payout, the Centre's fiscal deficit narrowed to 9.6% of BE of 2026-27 or Rs.1.62 trillion, according to the latest accounts released by the Controller General of Accounts (CGA) on Tuesday.

The government has budgeted a fiscal deficit of 4.3% of gross domestic product, or about Rs.16.96 trillion, for FY27 and is expected to rely on stronger tax co...