India's fiscal deficit for the April-July period reached 4.55 trillion rupees ($47.81 billion), equivalent to 26.8% of the full-year target set for the fiscal year ending March 31, 2027.
The deficit compares with 4.7 trillion rupees recorded in the same period a year earlier. Total government expenditure during the four months rose to 17.6 trillion rupees, up from 15.6 trillion rupees in the prior-year period, reflecting increased spending across sectors.
Capital expenditure, which funds physical infrastructure projects, surged to 4.5 trillion rupees from 3.5 trillion rupees a year ago. Net tax receipts climbed to 8.5 trillion rupees, compared with 6.6 trillion rupees in the corresponding period of the previous fiscal year, while non-tax revenue edged up to 4.2 trillion rupees from 4 trillion rupees.
The government has set a fiscal deficit target of 4.3% of GDP for the full fiscal year 2026/27, translating to 16.96 trillion rupees. The deficit data was released by the finance ministry in New Delhi on Monday.
The rupee's exchange rate against the U.S. dollar was cited at 95.1625 for reference.
