FX.co ★ India's Fiscal Deficit Widens in April-September

India’s fiscal deficit widened to INR 7.1 trillion in April–September 2026–27, up from INR 5.7 trillion in the same period a year earlier. This represents 42.1% of the full-year deficit target, compared with 36.5% during the corresponding period of the previous year.

Total expenditure rose 10.7% year-on-year to INR 25.5 trillion. Capital spending increased to INR 6.5 trillion from INR 5.8 trillion, amounting to 53.6% of the annual target. Total receipts grew 6.1% to INR 18.4 trillion, driven by higher net tax revenue of INR 12.8 trillion, up from INR 12.3 trillion a year earlier. Non-tax revenue also edged up to INR 4.8 trillion from INR 4.7 trillion.

For the 2026–27 fiscal year, India is targeting a fiscal deficit of INR 17.0 trillion, equivalent to 4.3% of GDP.