FX.co ★ India’s Fiscal Deficit Narrows in Apr–Feb

India’s fiscal deficit narrowed to INR 12.5 trillion in April–February of FY2025–26, from INR 13.5 trillion a year earlier, reaching 80.4% of the full-year target and improving on the 85.8% recorded in the same period last year. Total receipts grew 9.6% year-on-year to INR 27.9 trillion (82.0% of the annual target), driven by an increase in net tax revenues to INR 21.5 trillion from INR 20.2 trillion. Total expenditure rose 3.9% to INR 40.4 trillion (81.5% of the full-year goal), while capital expenditure—largely on infrastructure—climbed to INR 9.3 trillion (84.8% of the annual plan), up from INR 8.1 trillion a year earlier. The government aims to reduce the fiscal deficit to 4.4% of GDP (INR 15.7 trillion) in FY2025–26, from 4.8% in FY2024–25.