Fiscal deficit widens to 38% of BE as capex rises: CGA

The Centre's fiscal deficit for the April-August period of FY26 widened to 38.1 per cent of Budget estimates (BE) or %5.98 trillion, against 27 per cent of BE in the corresponding period last year, according to the data released by the Controller General of Accounts (CGA) on Tuesday.

- RUCHIKA CHITRAVANSHI

This comes in the backdrop of increased capital expenditure and muted growth in revenue receipts compared to the same period the previous year.

The net tax collection witnessed a contraction of 7 per cent and stood lower at 28.6 per cent (%8.1 trillion), against 33.8 per cent last year, with both income and corporate tax collections marginally lower than last year during the April-August period. Income tax collections contracted by 2 per cent and gross tax revenues expanded by 1 percent in the first five months of FY26. Experts attributed this to extension of the deadline to file taxes as well as an adverse base.