Monthly Review of Accounts of Government of India upto December 2025 (FY 2025-26)

1. At a Glance

• The Monthly Review of Accounts is a periodic disclosure by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, comparing actuals against Budget Estimates (BE) — a key fiscal-marker document for UPSC GS-III. [1]
• The December 2025 release covers the first nine months (April–December 2025) of FY 2025-26 and is the basis for tracking adherence to the 4.4% fiscal-deficit/GDP target set in Union Budget 2025-26. [1][2]

2. Why in the News

• 30 January 2026: PIB published the consolidated CGA monthly accounts upto December 2025, showing receipts at 72.2% and expenditure at 66.7% of BE 2025-26. [1]
• Devolution to States is ₹1,37,014 crore higher than the corresponding period of FY 2024-25 — reignites the fiscal-federalism debate. [1]

3. Background & Evolution

• The CGA was set up in 1976 under Article 150 of the Constitution (form of accounts of the Union and States, on advice of CAG). [1]
• Monthly accounts have been published since the rationalisation of the Public Financial Management System (PFMS), with FY-by-FY tabular comparison since 2010s.
• The data feeds into RBI's State of Economy bulletin and IMF Article IV consultations.

4. Core Static Facts (Apr–Dec 2025)

• Parent body: Ministry of Finance → Department of Expenditure → CGA. [1]
• Constitutional anchors: Articles 112 (Annual Financial Statement), 150 (form of accounts), 266 (Consolidated Fund), 270 (devolution).
• FRBM Act, 2003 mandates fiscal-deficit glide-path; BE 2025-26 fiscal deficit pegged at 4.4% of GDP. [3]

5. Multi-Dimensional Analysis

• Economic — Capex of ₹7.88 lakh crore in 9 months indicates front-loaded public capex push to crowd-in private investment; Revenue:Capital ratio ≈ 77:23. [1]
• Fiscal Federalism — Devolution share ₹10.38 lakh crore reflects the 15th Finance Commission's 41% vertical share of net divisible pool; YoY jump of ₹1.37 lakh crore tracks buoyant tax collections. [1]
• Administrative — Achievement of 72.2% of receipts vs 66.7% of expenditure signals a revenue-surplus tilt in pacing, easing Q4 borrowing pressure. [1]
• Governance / Transparency — Monthly disclosure under CGA is a global best practice (akin to IMF GFS standards); enhances market credibility for G-Sec / sovereign-bond inclusion in JPM and Bloomberg indices.
• Social — ₹3.17 lakh crore on Major Subsidies (food, fertiliser, petroleum) signals continued welfare commitment despite consolidation. [2]

6. Recent Developments (last 12-18 months)

• Jan 2026: PIB publishes Dec-2025 monthly accounts. [1]
• Dec 2025: Nov-2025 monthly review released. [4]
• Feb 2025: Union Budget 2025-26 presented; fiscal deficit target 4.4% of GDP. [3]
• Feb 2026: Jan-2026 review subsequently published (PRID 2233567). [4]

7. Prelims Hooks

• Monthly Accounts are released by the CGA, under Department of Expenditure (NOT Department of Economic Affairs). [1]
• Total Receipts upto Dec 2025: ₹25,25,156 crore (72.2% of BE). [1]
• Net Tax Revenue to Centre upto Dec 2025: ₹19,39,254 crore. [1]
• Non-Tax Revenue upto Dec 2025: ₹5,39,855 crore. [1]
• Non-Debt Capital Receipts upto Dec 2025: ₹46,047 crore. [1]
• Devolution to States upto Dec 2025: ₹10,38,164 crore, ₹1.37 lakh crore higher YoY. [1]
• Total Expenditure upto Dec 2025: ₹33,80,998 crore (66.7% of BE). [1]
• Capital Expenditure component: ₹7,87,935 crore. [1]
• Interest Payments upto Dec 2025: ₹9,11,059 crore. [2]
• Major Subsidies upto Dec 2025: ₹3,17,490 crore. [2]
• BE 2025-26 fiscal-deficit target: 4.4% of GDP. [3]
• Constitutional basis of CGA's account form: Article 150.
• Vertical devolution share (15th FC, 2021-26): 41% of net divisible pool.
• Receipts classification: Revenue Receipts (Tax + Non-Tax) and Capital Receipts (Debt + Non-Debt).

8. Mains Relevance

• Paper: GS-III — Government Budgeting; Indian Economy; Mobilization of Resources. Secondary GS-II — Fiscal Federalism, Finance Commission.
• Plausible stems: 1. "Capital expenditure has emerged as the principal lever of India's fiscal policy. Examine in light of the FY 2025-26 monthly accounts trends." (15 marks) 2. "Discuss the role of the Controller General of Accounts in ensuring fiscal transparency and federal fiscal balance." (10 marks) 3. "Evaluate whether the front-loading of tax devolution to States strengthens cooperative federalism." (15 marks)

9. Related Topics to Study Next

• Union Budget 2025-26 — provides the BE benchmarks against which monthly accounts are tracked. [3]
• FRBM Act, 2003 — sets the statutory deficit ceilings.
• 15th Finance Commission — defines vertical/horizontal devolution.
• Public Financial Management System (PFMS) — IT backbone of monthly accounts.
• Article 112 / 266 / 267 / 270 — constitutional fiscal architecture.
• CAG vs CGA — accounting (CGA) vs audit (CAG) distinction.
• RBI WMA & G-Sec borrowing calendar — financing of fiscal deficit.
• GST Compensation cess and Centre-State settlement — devolution linkages.

10. Common Errors / Trap Areas

• CAG ≠ CGA: CAG (Art. 148) audits; CGA prepares accounts (Art. 150 advice). Frequent UPSC trap.
• "Tax Revenue to Centre" is Net of devolution — Gross taxes are larger; aspirants confuse the two.
• Non-Debt Capital Receipts include disinvestment + loan recoveries — not borrowings.
• Fiscal deficit target 4.4% (BE 2025-26) vs 4.8% (RE 2024-25) — easy to swap years.
• Monthly Review is by Ministry of Finance, not RBI or NITI Aayog.