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Apr-Aug fiscal deficit rises on higher capex
Hindustan Times Chandigarh
|October 01, 2025
India’s fiscal deficit rose in the first five months of 2025-26, as compared with the same period last year, due to higher government capital expenditure while net tax revenue declined.
The Union government reported a fiscal deficit of ₹5.98 lakh crore for April-August, amounting to 38.1% of the target for the entire 2025-26 fiscal year, according to data released by the Controller General of Accounts on Tuesday.
For the same period last year, the fiscal deficit was ₹4.35 lakh crore.
The government has maintained a strong commitment to fiscal consolidation, with the deficit for FY26 projected at ₹15.69 lakh crore, lower than the ₹16.85 lakh crore reported in FY25, and pegged at 4.4% of the Gross Domestic Product (GDP).
Finance minister Nirmala Sitharaman had reiterated this target in her budget speech earlier this year, affirming the Centre’s glide path to reduce fiscal deficit to 4.4% of GDP by 2025-26.
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