FX.co ★ India’s Fiscal Deficit Narrows in April–January

India’s fiscal deficit narrowed to INR 9.81 trillion in April–January of FY2025–26, from INR 11.70 trillion a year earlier, amounting to 63.0% of the government’s full-year target compared with 74.5% in the same period last year. Total receipts rose 12.8% year-on-year to INR 27.09 trillion, or 79.5% of the annual target, with net tax revenues increasing to INR 20.94 trillion from INR 19.0 trillion a year earlier. Total expenditure grew 3.4% to INR 36.90 trillion, representing 74.3% of the full-year target. Capital expenditure, largely directed toward infrastructure, climbed to INR 8.42 trillion—76.9% of its annual target—up from INR 7.6 trillion in the previous year. The government aims to reduce the fiscal deficit to 4.4% of GDP, or INR 15.7 trillion, in FY2025–26, down from 4.8% in FY2024–25.