India’s Fiscal Snapshot for 2025: Rising Revenues, Robust Capex, and Strategic Disinvestment Strengthen Public Finances
India’s fiscal operations for the first eight months of the financial year 2025–26 reflect a combination of strong tax mobilisation, strategic disinvestment performance, and capital expenditure acceleration, according to consolidated data released by the Ministry of Finance.
As of end-November 2025, the Government of India has received ₹19.49 lakh crore, amounting to 55.7 percent of the total Budget Estimates for the fiscal year. Of this, ₹13.93 lakh crore was realised as net tax revenue, ₹5.16 lakh crore as non-tax revenue, and ₹38,927 crore through non-debt capital receipts.
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Total expenditure by the central government amounted to ₹29.25 lakh crore or 57.8 percent of the annual target. Of this, ₹22.67 lakh crore was revenue expenditure, including ₹7.45 lakh crore in interest payments and ₹2.88 lakh crore towards major subsidies.
Capital expenditure reached ₹6.58 lakh crore, indicating continued emphasis on infrastructure-led fiscal policy. The Ministry of Finance confirmed that revenue and capital disbursements remain in line with fiscal objectives set in the Union Budget 2025–26.
The Department of Investment and Public Asset Management (DIPAM) reported that dividend receipts from Central Public Sector Enterprises (CPSEs) exceeded expectations, reaching ₹74,017 crore in FY 2024–25 against a Revised Estimate of ₹55,000 crore.
This marks the fifth consecutive year in which actual CPSE dividends have surpassed budget targets, attributed to structured capital management and sustained profitability. The inter-ministerial Committee for Monitoring of Capital Management and Dividends by CPSEs (CMCDC) continues to oversee dividend planning across state-owned enterprises.
DIPAM also concluded a successful Offer for Sale (OFS) of a 3.61 percent stake in Mazagon Dock Shipbuilders Limited in April 2025. The oversubscribed transaction generated ₹3,673.42 crore for the exchequer. Market data following the sale indicates that MDL’s share price maintained an upward trajectory, reinforcing investor sentiment and capital market discipline.
In capacity building efforts, DIPAM collaborated with the Capacity Building Commission to conduct a leadership communication workshop in January 2025 and organized a financial literacy programme in partnership with the National Stock Exchange in August.
These initiatives focused on improving public sector communication strategies and enhancing understanding of market mechanisms among CPSE officers.
Capital expenditure by key infrastructure entities showed significant progress. According to data compiled by the Department of Public Enterprises (DPE), select CPSEs and central infrastructure agencies including the Railway Board, NHAI, DMRC, and DVC achieved ₹3.85 lakh crore in capital outlay between April and September 2025.
This represents 49.1 percent of the ₹7.85 lakh crore capital expenditure target for the year, and reflects continued momentum in public investment.
The DPE also led a series of workshops aimed at encouraging the adoption of Industry 4.0 technologies in public enterprises, including AI, Digital Twin, and 3D Printing. The initiative forms part of a whole-of-enterprise approach to drive digital transformation and innovation in the public sector.
During the year, the Ministry granted Navratna status to two CPSEs—Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC)—providing them with greater operational autonomy.
Procurement from Micro and Small Enterprises (MSEs) by CPSEs reached 47.21 percent of total procurement value by November 2025, significantly surpassing the 25 percent statutory requirement.
This performance was noted as an important policy outcome under the government’s broader efforts to support MSEs through preferential procurement.