Business

India's Fiscal Deficit Widens to ₹7.14 Lakh Crore in First Half of FY27

Published: 31 October 2026 · 1 min read

What Happened

India's fiscal deficit reached ₹7.14 lakh crore during April–September 2026, accounting for 42.1% of the FY27 annual target, compared with 36.5% a year earlier. Government data released on October 30 showed total expenditure of ₹25.50 lakh crore against receipts of ₹18.35 lakh crore. Capital expenditure reached ₹6.55 lakh crore, reflecting higher government investment spending.

Key Takeaways

The Centre's fiscal deficit rose as spending increased faster than receipts. However, the six-month figure does not establish whether India will exceed its full-year deficit target of 4.3% of GDP.

Sources

PIB, Reuters