India's fiscal deficit for April-January FY26 reached ₹9,814.07 billion (INFISC=ECI), per government data, while net tax receipts climbed to ₹20,942.18 billion. This reflects steady revenue growth amid controlled spending, keeping the full-year target of 4.5% GDP in sight despite capex push.
The government reported April-January fiscal deficit at ₹9,814.07 billion, about 66% of the FY26 budget estimate of ₹14.86 lakh crore. Net tax receipts rose sharply to ₹20,942.18 billion, driven by direct taxes and GST collections, supporting infra and welfare outlays.
Key Highlights
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Deficit Details: ₹9,814.07 Bn vs FY26 target ₹14,860 Bn (66% utilization); down from prior year's pace.
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Tax Revenue: Net receipts ₹20,942.18 Bn, up ~12% YoY; direct taxes ~55%, GST ~30%.
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Expenditure: Capex steady at ~₹7.5 Tn; revenue spend controlled amid subsidy reforms.
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Budget Context: Full-year target 4.5% of GDP (₹16.5 Tn nominal est.); positive for ratings.
Outlook
Strong tax buoyancy from formalization aids deficit glide path. Feb-Mar collections key to meeting targets. Supports RBI's growth outlook; bond yields stable. Risks: global slowdown, oil shocks.
Sources: Ministry of Finance (Controller General of Accounts), Press Information Bureau, Economic Times.