India’s fiscal deficit for the April-July period reached 4.55 trillion rupees ($47.81 billion), or 26.8% of the full-year target, government data showed on Monday.
The shortfall narrowed from 4.7 trillion rupees recorded in the same four-month span a year earlier, reflecting a modest improvement in fiscal management. The central government’s full-year fiscal deficit target for the 2027 financial year remains set at 4.3% of GDP, equivalent to 16.96 trillion rupees.
Net tax receipts climbed to 8.5 trillion rupees, up from 6.6 trillion rupees in the prior-year period, while non-tax revenue increased to 4.2 trillion rupees from 4 trillion rupees. Total government expenditure rose 12.8% to 17.6 trillion rupees, compared with 15.6 trillion rupees in the corresponding period last year.
Capital expenditure, directed toward physical infrastructure projects, stood at 4.5 trillion rupees, an increase from 3.5 trillion rupees in the same period a year earlier. The data underscores continued government investment in infrastructure despite fiscal constraints.
