Fiscal deficit doubles to ₹2.8 lakh cr in Q1

THE CENTRE'S FISCAL deficit more than doubled on year to ₹2.8 lakh crore to reach 17.9% of the annual target in the first quarter of FY26, with acceleration in capex and revenue expenditure even as net tax receipts declined.

- FE BUREAU

Thanks to robust non-tax receipts, the government's overall revenue receipts were still comfortable with 27.6% of the target met in Q1FY26 compared with 22.4% of the relevant target during the year-ago period.

In the first quarter of FY26, net tax revenues contracted by 1.7% to ₹5.4 lakh crore, while non-tax revenues surged by 33% on year to ₹3.73 lakh crore following the receipt of the higher-than-budgeted dividend from the Reserve Bank of India.