India’s Fiscal Deficit Narrows in April–January
2026-02-27 11:30
By
Joana Ferreira
1 min. read
India’s fiscal deficit narrowed to INR 9.81 trillion in April–January 2025–26, down from INR 11.70 trillion a year earlier, reaching 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 at INR 20.94 trillion versus INR 19.0 trillion a year ago.
Total expenditure increased 3.4% to INR 36.90 trillion, or 74.3% of the full-year target.
Capital spending, largely focused on infrastructure, jumped to INR 8.42 trillion, reaching 76.9% of its annual objective compared with INR 7.6 trillion previously.
The government aims to narrow the fiscal deficit to 4.4% of GDP, or INR 15.7 trillion, in FY2025–26, down from 4.8% in FY2024–25.