- Why in news
- On 30 September 2026, the Ministry of Finance released the Union Government's monthly accounts up to August 2026 (FY 2026-27). They show receipts at 37.5% and expenditure at 38.9% of Budget Estimates.
- What it is
- The Monthly Accounts of the Union Government are compiled each month by the Controller General of Accounts under the Ministry of Finance. They show cumulative receipts, expenditure and fiscal position against Budget Estimates (BE). They help track whether the government is on course to meet its fiscal deficit target.
- Total receipts
- Receipts up to August 2026 were ₹13,67,709 crore, which is 37.5% of the BE for 2026-27.
- Tax devolution
- ₹5,90,391 crore was devolved to States, which is ₹60,243 crore lower than in the previous year.
- Total expenditure
- Total expenditure was ₹20,77,958 crore, or 38.9% of BE. Of this, ₹15,68,009 crore was on revenue account and ₹5,09,949 crore on capital account.
- Interest and subsidies
- Interest payments were ₹5,14,810 crore and major subsidies ₹1,87,037 crore, both counted within revenue expenditure.
- Non-debt capital receipts
- Non-debt capital receipts are those that do not create a liability, such as recovery of loans and disinvestment proceeds.
Don’t confuse with Revenue expenditure vs capital expenditure: Revenue expenditure meets routine costs like interest and subsidies and creates no asset. Capital expenditure creates assets or reduces liabilities.
Don’t confuse with Non-tax revenue vs non-debt capital receipts: Non-tax revenue includes dividends and interest receipts. Non-debt capital receipts include loan recoveries and disinvestment, which are capital in nature.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Monthly accounts show whether the Centre is meeting its fiscal targets and give an early read on the fiscal deficit.
Problems
- Interest payments take a large share of revenue expenditure, which limits room for capital spending.
Way forward
- Raise revenue buoyancy and keep the quality of spending tilted towards capital expenditure.
Put in your answer
Capital expenditure: Capital account spending was ₹5,09,949 crore, about a quarter of total expenditure so far.
- 2019Mains GS3 · Q12Explain public expenditure management challenges in post-liberalisation budget making.
- 2021Mains GS3 · Q2Distinguish capital and revenue budgets and explain their components.
- 2013Mains GS3 · Q2Reasons for FRBM Act 2003, and critical assessment of its features and effectiveness.
- 2001Prelims Q73Match fiscal, budget, revenue and primary deficit with their definitions.
- 2025Prelims Q61Which statements on revenue, fiscal and primary deficits are correct, given figures?
- 2025Prelims Q65Compute gross primary deficit from fiscal deficit, non-debt receipts and interest.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Routine monthly data; useful background but UPSC rarely tests it.
Worth revising until Prelims 2028: most news questions come within two years of the event.