Despite tax short-fall, Govt on track to meet fiscal deficit and CAPEX targets: PwC India

The government is on track to meet the fiscal deficit and capital expenditure (CAPEX) targets for the current financial year, supported by strong non-tax revenue inflows and front-loaded spending across key sectors, according to Ranen Banerjee, Partner and Economic Advisory Leader at PwC India.

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In an exclusive conversation with ANI, Banerjee said the Centre's fiscal position remains comfortable even as nominal GDP growth may come in slightly lower than earlier estimated.

Banerjee said that the fiscal deficit target of 4.4 per cent of GDP for FY26 is well within reach.

“Given the trends till October, nominal GDP may be a couple of percentage points lower. But the government has access to significant non-tax revenues through dividends, which have been much higher this year. So achieving the fiscal deficit target should not be a challenge,” he said.