India’s fiscal deficit stood at ₹4.68 lakh crore during the first four months of FY26, representing 29.9% of the full-year budget target of ₹15.69 lakh crore, official data showed.
The widening deficit primarily reflects a sharp rise in capital expenditure, which hit ₹3.47 lakh crore, or 30.9% of the annual target, compared with 23.5% in the same period last year.
Total expenditure for April–July rose to ₹15.64 lakh crore, while gross tax revenue grew modestly to ₹10.93 lakh crore. Non-tax revenue, aided by a ₹2.1 lakh crore dividend transfer from the Reserve Bank of India, amounted to ₹4.04 lakh crore, helping contain the deficit.
The slowdown in net tax revenue, at 23.3% of the annual target, reflects the income tax cuts announced in the 2025 Union Budget.
Looking ahead, fiscal pressures could persist as the government gears up for a pre-Diwali GST rationalisation, moving 90% of goods and services into simplified 5% and 18% slabs.
The GST Council is expected to finalise the proposal in early September, potentially affecting tax collections in the coming months.
Source from: https://www.cnbctv18.com/economy/india-april-july-fiscal-deficit-hits-29-9-pc-of-fy26-target-ws-l-19661134.htm
