FX.co ★ India’s Fiscal Deficit Narrows in April-July

India’s fiscal deficit narrowed to INR 4.6 trillion in April–July 2026–27 from INR 4.7 trillion in the same period a year earlier, representing 26.8% of the full-year target, down from 29.9% previously. Total expenditure rose 12.7% year-on-year to INR 17.6 trillion, with capital spending increasing to INR 4.5 trillion from INR 3.5 trillion and reaching 36.9% of the annual target. Total receipts grew 19.3% to INR 13.1 trillion, driven by higher net tax revenues of INR 8.5 trillion, compared with INR 6.6 trillion a year earlier. For 2026–27, India is targeting a fiscal deficit of INR 17.0 trillion, equivalent to 4.3% of GDP.