FX.co ★ India Budget Gap Widens

In the first half of the 2026 fiscal year, the Indian central government reported a budget deficit of INR 5.73 trillion, an increase from INR 4.75 trillion recorded during the same period the prior year. This figure, however, marks a reduction in the deficit from the INR 5.98 trillion reported over the initial five months. The deficit accounted for 37% of the annual estimates outlined in the most recent budget, showing improvement from the previous month's 40%, as businesses adjusted to the initial phase of aggressive U.S. tariffs. Government expenditures increased by 9.1% year-on-year, reaching INR 23 trillion, while total revenue grew by 5.7%, amounting to INR 17.3 trillion.