India’s fiscal deficit for the first four months of the fiscal year reached 4.55 trillion rupees ($47.81 billion), equivalent to 26.8% of the full-year target, government data showed.
The shortfall narrowed from 4.7 trillion rupees in the same period a year earlier, reflecting higher revenue collection despite rising expenditures. The government set an annual fiscal deficit target of 4.3% of GDP, or 16.96 trillion rupees, for the fiscal year ending March 31, 2027.
Net tax revenue climbed to 8.5 trillion rupees, up from 6.6 trillion rupees in April-July 2025, while non-tax revenue increased to 4.2 trillion rupees from 4 trillion rupees a year prior. Total government spending rose to 17.6 trillion rupees, compared with 15.6 trillion rupees in the corresponding period of the previous year.
Capital expenditures, which fund physical infrastructure projects, totaled 4.5 trillion rupees, an increase from 3.5 trillion rupees in the same period last year. The data was released by the government on Monday, based on figures compiled by Reuters.
