FX.co ★ India's Fiscal Deficit Widens to 41.9% of Full-Year Target

India’s fiscal deficit widened to INR 7.1 trillion in April–August 2026-27, up from INR 6.0 trillion in the same period a year earlier, reaching 41.9% of the full-year target versus 38.1% previously. Total expenditure rose 10.5% year-on-year to INR 20.8 trillion, with capital spending increasing to INR 5.1 trillion from INR 4.3 trillion, equivalent to 41.7% of the annual allocation. Total receipts grew 6.6% to INR 13.7 trillion, driven by higher net tax revenue of INR 8.4 trillion, compared with INR 8.1 trillion a year earlier. Non-tax revenue also edged up to INR 4.5 trillion from INR 4.4 trillion. For 2026-27, India is targeting a fiscal deficit of INR 17.0 trillion, or 4.3% of GDP.