India’s Fiscal Deficit Reaches 26.8% of FY27 Target

The Indian government keeps track of how much money it spends compared with how much it receives.

During the first four months of FY27, its fiscal deficit used 26.8% of the amount planned for the whole year.

This was lower than the 29.9% used during the same period a year earlier.

Tax collections grew strongly, helping control the deficit.

The government also increased spending on building projects and other capital investments by 30%.

Gross tax revenue grew by 11%, with direct taxes and customs duties making important contributions.

Customs collections benefited from higher duties on gold and silver.

Experts said tax revenue will still need to grow during the rest of the year to meet the government’s budget goal.

A cut in petrol and diesel duties could make that target harder to achieve.