Union Government’s Fiscal Position up to February 2026 The Ministry of Finance has released the monthly accounts for the Union Government up to February 2026 (FY 2025‑26). The data provides a clear picture of receipts, outlays and the fiscal balance midway through the financial year, a crucial reference for UPSC aspirants studying public finance. Key Developments (Bullet Points) Overall receipts stand at ₹27,91,943 crore , representing **82.0%** of the revised estimate (RE) for FY 2025‑26. Tax Revenue (Net to Centre) contributed ₹21,45,223 crore . Non‑Tax Revenue amounted to ₹5,81,173 crore . Non‑Debt Capital Receipts were ₹65,547 crore . Devolution to states reached ₹12,66,369 crore , **₹85,837 crore** higher than the same period last year. Total expenditure recorded at ₹40,44,592 crore , **81.5%** of the RE for FY 2025‑26. Out of this, Revenue Account incurred ₹31,15,270 crore and Capital Account ₹9,29,322 crore . Interest Payments were ₹10,65,305 crore , while Major Subsidies stood at ₹3,89,610 crore . Important Facts The receipts‑to‑expenditure gap indicates a fiscal deficit of roughly ₹12,52,649 crore (≈5.3% of GDP, assuming GDP ≈ ₹2.35 lakh crore). The higher devolution reflects the centre’s commitment to fiscal federalism, aiding states in meeting their own expenditure needs. Interest outlays remain a sizable chunk of revenue expenditure, underscoring the cost of past borrowing. UPSC Relevance Understanding these figures is essential for GS‑3 (Economy) and GS‑2 (Polity) papers. Aspirants should be able to: Explain the composition of government receipts and the role of each component. Analyse the impact of high interest payments on fiscal consolidation. Discuss the significance of devolution in the context of fiscal federalism and Centre‑State relations. Relate the fiscal deficit to macro‑economic indicators such as inflation, borrowing costs, and growth. Way Forward To narrow the deficit, the government may need to: Enhance tax compliance and broaden the tax base, especially in indirect taxes. Rationalise subsidies by targeting them more effectively, reducing leakages. Accelerate asset monetisation and disinvestment to boost non‑debt capital receipts. Maintain prudent debt management to keep interest outlays sustainable. These steps will be closely watched in the upcoming Union Budget and will form a core part of UPSC answer writing on fiscal policy.