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flag India's fiscal deficit surged to ₹2.81 trillion in Q1, driven by increased capital spending.

flag India's fiscal deficit for the first quarter of the 2025-26 financial year reached ₹2.81 trillion, or 17.9% of the annual target, up from 8.4% in the same period last year. flag This increase was driven by a 52% rise in capital expenditure to ₹2.75 trillion, or 25% of the annual goal. flag Despite higher spending, the Reserve Bank of India's dividend of ₹2.69 trillion is expected to help keep the deficit within the 4.4% of GDP target.

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