Fiscal deficit widens as capex rises 55%

INDIA’S fiscal deficit rose to ₹8.3 lakh crore during April-October FY26 period, accounting for around 53% of the full-year Budget Estimate (BE), up from ₹27.5 lakh crore or 48% of the previous year’s provisional estimate in the same period.

- ENS ECONOMIC BUREAU @NewDelhi

The widening gap comes despite an improvement in the revenue deficit, driven largely by strong capital expenditure and higher non-tax revenues.

The Union government’s capital expenditure surged 32% year-on-year to ₹6.2 lakh crore in the first seven months of the financial year, achieving 55% of the budgeted target versus 44% in the same period last year. A 28% contraction in October — attributed to festive holidays — followed a strong 31% expansion in Q2.