India’s Fiscal Deficit Reaches 36.5% of Full-Year Target in H1 FY26, CGA Data Shows
New Delhi: India’s fiscal deficit for the first half of the 2025-26 financial year has reached 36.5% of the full-year target, according to data released on Friday by the Controller General of Accounts (CGA).
This indicates a moderate rise compared with the first half of the previous fiscal year, when the deficit stood at 29% of the Budget Estimates (BE) 2024-25. The increase reflects a combination of continued government spending and revenue trends observed in the first six months of FY26.
The fiscal deficit measures the gap between the government’s total expenditure and its total revenue, excluding borrowings. Maintaining this balance is crucial for the economy, as higher deficits can impact inflation, borrowing costs, and fiscal sustainability.
Experts note that while a fiscal deficit above one-third of the annual target in H1 is not uncommon, close monitoring of government spending and revenue collection will be important in the second half of the fiscal year to ensure the full-year target is met without undue pressure on public finances.
The CGA data provides a snapshot of India’s fiscal health at the mid-point of the year and is closely watched by economists, policymakers, and investors to assess the government’s financial management and macroeconomic stability.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
