Fiscal deficit widens on higher capex, lower tax

India’s fiscal deficit for the April-October period rose on higher capital expenditure and lower net tax revenue.

- Rhik Kundu

The fiscal deficit stood at ₹8.25 trillion, or 52.6% of the 2025-26 budget target, showed data released by the Controller General of Accounts (CGA) on Friday. That compares with ₹7.51 trillion or 46.5% of the estimate in the year-ago period.

The central government's fiscal deficit target is 4.4% of the gross domestic product (GDP) for 2025-26 announced in the Union budget. The government ended fiscal 2024-25 with a fiscal deficit of 4.8%, which was lower than the revised estimate of 4.9%.

In absolute terms, the budgeted fiscal deficit stands at ₹15.69 trillion for 2025-26.

In the first seven months of FY26, net tax revenue stood at ₹12.74 trillion, or 44.9% of the budget target, compared to ₹13.05 trillion or 50.5% of the target in the year-ago period.