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Govt’s capex up 40% in H1, fiscal deficit widens
Financial Express Hyderabad
|November 01, 2025
THE CENTRE'S FISCAL deficit came in at 36.5% of the annual target in the first six months of 2025-26, compared with 29.4% in the year-ago period, largely due to a surge in capital expenditure while net tax revenues continued to contract.
The fiscal deficit stood at ₹5.73 lakh crore in H1 compared with ₹4.75 lakh crore in H1FY25. Its budgetary capital expenditure (capex) rose a steep 40% on year in H1FY26, partly helped by a 15% year-on-year fall seen in H1FY25 due to election-related lull. Capex rose by 31% on-year in
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