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India's fiscal deficit hit 36.5% of annual target in first half of FY26, driven by higher spending and lower taxes.
India's fiscal deficit reached ₹5.73 trillion (36.5% of the full-year target) in the first half of FY26, up from 29.4% the prior year, driven by a 40% surge in capital expenditure to ₹5.8 trillion and lower tax revenues.
Total spending rose to ₹23.03 trillion, while net tax receipts declined slightly to ₹12.29 trillion.
Non-tax revenue, boosted by a ₹2.69 trillion dividend from the Reserve Bank of India, rose 30.5%.
Despite tax collection challenges, officials expect the fiscal deficit to stay within the 4.4% of GDP target, supported by expenditure management and strong non-tax inflows.
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El déficit fiscal de la India alcanzó el 36.5% del objetivo anual en la primera mitad del año fiscal 26, impulsado por un mayor gasto y menores impuestos.