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flag India’s fiscal deficit reached 63% of target by Jan 2026, aided by strong tax collections and controlled spending, supporting its 4.4% GDP target.

flag India's fiscal deficit for April-January 2025-26 stood at Rs 9.81 lakh crore, or 63% of revised estimates, below last year’s 74.5%, despite a downward GDP revision to Rs 347 lakh crore due to a new base year. flag Strong tax collections—78% of target—and slower spending, at 74% of revised estimates, support meeting the 4.4% fiscal deficit target. flag The upcoming Union Budget aims to reduce the deficit to 4.3% of GDP, requiring coordinated fiscal efforts across central and state governments.

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