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India’s Fiscal Deficit Hits 38% of FY26 Target by August as Taxes Lag and Capex Accelerates

Officials signal adherence to the 4.4% goal via non‑tax inflows, disinvestment and GST buoyancy.

Overview

  • The April–August fiscal gap stood at Rs 5.98 lakh crore, equal to 38.1% of the full‑year target, according to CGA data.
  • Net tax revenue to the Centre was Rs 8.10 lakh crore, down from Rs 8.70 lakh crore a year earlier on softer direct and indirect taxes.
  • Non‑tax receipts rose to Rs 4.40 lakh crore, lifted by a record dividend transfer from the Reserve Bank of India.
  • Capital expenditure reached about Rs 4.31 lakh crore versus Rs 3.00 lakh crore a year ago, reflecting front‑loaded infrastructure outlays.
  • Total receipts were Rs 12.83 lakh crore (36.7% of BE) against total expenditure of Rs 18.81 lakh crore (37.1% of BE), including Rs 5.30 lakh crore devolved to states; economists caution that persistent weak tax mop‑up could trigger spending recalibration later in the year.