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Fiscal Consolidation, Capex Rose Together in Apr-May FY26: UBI
July 03, 2025
|The Business Guardian
India has made a promising start to the financial year 2025-26 (FY26), as both fiscal consolidation and capital expenditure (capex) are moving forward together, according to a report by Union Bank of India.
The report highlighted that the fiscal deficit for April-May FY26 stood at just Rs 0.13 lakh crore, which is only 0.8 per cent of the Budget Estimates (BE). This is a major improvement compared to the same period last year, when the fiscal deficit was Rs 0.51 lakh crore or 3.2 per cent of the Revised Estimates (RE).
The better fiscal position has been supported by a strong rise in revenue receipts, especially a record dividend of Rs 2.69 lakh crore from the Reserve Bank of India (RBI). It stated, "Overall, the financial year has taken off on a promising note from the perspective of the government's contribution to growth dynamics".
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