FX.co ★ India’s Fiscal Deficit Narrows in April–December

India's fiscal deficit for the period of April to December 2025–26 contracted to INR 8.56 trillion from INR 9.14 trillion the previous year, achieving 54.5% of the governmental annual target, improving from 56.7% in the corresponding period of the prior year. Total revenue witnessed an 8.9% increase year-on-year, totaling INR 25.25 trillion or 72.2% of the yearly target, with net tax revenues climbing to INR 19.39 trillion compared to INR 18.4 trillion the previous year. Total expenditure saw a 4.6% rise to INR 33.81 trillion, accounting for 66.7% of the fiscal year's target. Capital expenditure, primarily directed towards infrastructure, surged to INR 7.88 trillion, achieving 70.3% of its intended yearly goal, up from INR 6.9 trillion previously. The government is working towards reducing the fiscal deficit to 4.4% of GDP, equivalent to INR 15.7 trillion, for the fiscal year 2025–26, down from 4.8% in the fiscal year 2024–25.