Monthly review of accounts of Government of India upto January 2026 (FY 2025-26)

1. At a Glance

• Monthly accounts review is a fiscal transparency exercise consolidated by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, tracking Centre's receipts and expenditure cumulatively each month [S1].
• For UPSC, it is the canonical real-time source for fiscal deficit, tax devolution, capex trends — core to GS-III Indian Economy and Prelims fiscal data MCQs [S1][S2].

2. Why in the News

• On 27 February 2026, PIB released the Monthly Review of Accounts upto January 2026 for FY 2025-26 [S1].
• Fiscal deficit hit ₹9.8 lakh crore = 63% of full-year BE at January-end, vs 74.5% in the comparable period of FY 2024-25 — signalling tighter fiscal management [S2].

3. Background & Evolution

• CGA established 1976 under Allocation of Business Rules; functions under Article 150 of the Constitution (form of accounts prescribed by President on advice of CAG) [S1].
• Monthly accounts published since reforms-era to improve real-time fiscal transparency; harmonised with FRBM Act, 2003 disclosure norms.
• RE (Revised Estimates) 2025-26 were tabled with Union Budget 2026-27 (1 Feb 2026); current month-wise progress benchmarked against RE [S1].

4. Core Static Facts

Cumulative position upto January 2026 (FY 2025-26): - Total Receipts: ₹27,08,654 crore = 79.5% of RE [S1]. - Net Tax Revenue (to Centre): ₹20,94,218 crore [S1]. - Non-Tax Revenue: ₹5,57,307 crore [S1]. - Non-Debt Capital Receipts: ₹57,129 crore [S1]. - Devolution to States (share of taxes): ₹11,39,767 crore, ₹65,588 crore higher than previous year [S1]. - Total Expenditure: ₹36,90,061 crore = 74.3% of RE [S1]. - Revenue Account: ₹28,47,780 crore [S1]. - Capital Account: ₹8,42,281 crore [S1]. - Fiscal Deficit: ₹9.8 lakh crore = 63% of BE (vs 74.5% YoY) [S2]. - FY 2025-26 Fiscal Deficit target: 4.4% of GDP ≈ ₹15.58 lakh crore [S2]. - Implementing body: Controller General of Accounts, Department of Expenditure, Ministry of Finance [S1].

5. Multi-Dimensional Analysis

Economic - Sharp YoY improvement in deficit ratio (63% vs 74.5%) indicates either revenue buoyancy or expenditure compression [S2]. - Capex ₹8.42 lakh crore continues Centre's investment-led growth push; revenue:capital ratio ~77:23 [S1].

Legal / Constitutional - Devolution under Article 270 based on 16th Finance Commission's predecessor (15th FC) award (41% vertical share) [S1]. - CGA's role flows from Article 150 (form of Union accounts) and CAG's DPC Act, 1971.

Administrative / Federalism - ₹11.39 lakh crore devolved — front-loading of tax devolution has been a policy choice since 2022-23 to ease State cash flows [S1].

Governance - Monthly publication operationalises FRBM Act §7 disclosures; enables Parliament and public scrutiny against BE/RE.

6. Recent Developments (last 12-18 months)

• 27 Feb 2026: Monthly accounts upto January 2026 published [S1].
• 1 Feb 2026: Union Budget 2026-27 presented with RE 2025-26 forming benchmark for this review [S1].
• End-February 2026 (subsequent release): Fiscal deficit touched 80.4% of full-year target at Feb-end [S2].
• FY 2025-26 deficit target trimmed to 4.4% of GDP from the glide-path 4.5% set in earlier Budget [S2].

7. Prelims Hooks

• Monthly Accounts are consolidated by CGA, not CAG or RBI [S1].
• CGA functions under Department of Expenditure, Ministry of Finance [S1].
• Article 150 of Constitution governs form of Union & State accounts [S1].
• FRBM Act year: 2003; rules notified 2004.
• Fiscal Deficit FY 2025-26 BE target: 4.4% of GDP (~₹15.58 lakh crore) [S2].
• Tax devolution upto Jan 2026: ₹11,39,767 crore [S1].
• Centre's Net Tax Revenue upto Jan 2026: ₹20,94,218 crore [S1].
• Total Receipts at 79.5% of RE; Total Expenditure at 74.3% of RE [S1].
• Capital Expenditure upto Jan 2026: ₹8,42,281 crore [S1].
• Fiscal Deficit at Jan-end FY26: 63% of BE, down from 74.5% YoY [S2].
• Devolution share to States under 15th FC: 41% of divisible pool.
• Non-Debt Capital Receipts upto Jan 2026: ₹57,129 crore [S1].

8. Mains Relevance

• GS-III: Indian Economy — Government Budgeting; Mobilisation of Resources; Fiscal Policy.
• GS-II: Devolution of powers and finances; Centre-State financial relations.
• Plausible stems: 1. "Examine the trajectory of Union fiscal deficit in FY 2025-26 against the FRBM glide-path. What does front-loading of tax devolution mean for cooperative federalism?" 2. "Capital expenditure has emerged as the principal lever of growth in Union Budgets since 2021-22. Critically evaluate using recent CGA monthly accounts data." 3. "Discuss the constitutional and statutory framework that governs publication of Government of India accounts."

9. Related Topics to Study Next

• FRBM Act, 2003 — statutory anchor of deficit targets.
• 15th & 16th Finance Commissions — devolution formula and ToR.
• Article 112 / 266 / 267 — Annual Financial Statement, CFI, Contingency Fund.
• CAG (Article 148-151) — audit counterpart of CGA.
• Union Budget 2026-27 — RE/BE benchmarks.
• Public Account vs Consolidated Fund of India — accounting classification.
• GST Compensation & States' finances — links to devolution discourse.
• Capex multiplier / NIP / Gati Shakti — quality of capital spending.

10. Common Errors / Trap Areas

• Confusing CGA (accounts, MoF) with CAG (audit, constitutional body).
• Treating Devolution to States as part of Centre's expenditure — it is deducted from Gross Tax Revenue to arrive at Net Tax Revenue to Centre [S1].
• Mixing BE vs RE vs Actuals — the January 2026 review benchmarks against RE, while fiscal deficit % is reported against BE [S1][S2].
• Assuming Fiscal Deficit target is 4.5% — it was revised to 4.4% for FY 2025-26 [S2].
• Article confusion: form of accounts is Article 150, not Article 148 (which establishes CAG).

11. Sources

• [S1] Monthly review of accounts of Government of India upto January 2026 (FY 2025-26) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2233567 — (tier: 1)
• [S2] CGA Monthly Report 2025-2026 — https://cga.gov.in/MonthlyReport/Published/8/2025-2026.aspx — (tier: 1)