Question
What percentage of the full-year target did India’s
fiscal deficit reach in the first half (April–September) of FY26?ÂSolution
India’s fiscal deficit stood at 36.5% of the FY26 full-year target, higher than 29.4% a year ago. The increase was driven by higher capital expenditure (40% growth) and greater devolution to states (â‚ą8.3 trillion). Despite muted tax revenue, non-tax receipts like the RBI’s â‚ą2.7 trillion dividend helped sustain the government’s fiscal goalsÂ
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