Fiscal deficit widens amid capital expenditure surge

Fiscal deficit, or the shortfall between government spending and revenue, excluding borrowings, shows how much the government must borrow to meet its expenses. While moderate deficits can help sustain economic momentum, a sharp rise would raise concerns over inflationary pressures and rising public debt

- PRESS TRUST OF INDIA

The Centre's fiscal deficit stood at 17.9 per cent of the full-year target at the end of June, according to data released by the Controller General of Accounts (CGA) Thursday.

It was at 8.4 per cent of Budget Estimates (BE) of 2024-25 in the first three months of the previous financial year.

In absolute terms, the fiscal deficit, or gap between the government's expenditure and revenue, was Rs 2,80,732 crore in the April-June period of the 2025-26 fiscal year.