December GST Collections Pick Up Pace, Signal Consumption Stability

India’s GST collections rose 6.1% year-on-year to ₹1.74 lakh crore in December 2025, marking the strongest growth in three months. The pickup was supported by steady domestic consumption, improved compliance, and festive-season demand. While growth remains moderate, economists see the trend as a stabilising signal for indirect tax revenues heading into the final quarter.

India has utilised around 62% of its full-year fiscal deficit target by November, raising focus on Budget 2026 execution. Higher capital spending, subsidies, and slower revenue inflows have driven the gap. Analysts believe meeting the 4.4% deficit goal will hinge on expenditure discipline, buoyant tax collections, and controlled borrowing in the remaining months.