Fiscal deficit in H1 stood at 36.5% of full-year target

TheCentre's fiscal deficit forthe firsthalf (April-September) of 2025-26 (H1FY26) stood at 36.5 per cent of the full-year target, despite muted growth in tax revenues anda sharp uptick in devolution to states.

- ASIT RANJAN MISHRA

During the same period last year, the fiscal deficit was 29.4 percent of the full-year target, owing to a general electionled slowdown in capital expenditure (capex), data released by the Controller General of Accounts showed.

In HiFY26, capex grew at a robust 40 percent, exhausting more than half (51.8 per cent) of the %11.2 trillion full-year target, compared with 37.3 percent spent during the same period a year ago.

Revenue expenditure, however, stood at 43,7 per cent of the FY26 target, compared with 45,7 per cent during the same period in the preceding year.