India's fiscal deficit for the first half of FY26 reached 36.5% of the full-year target, totaling INR 5.73 trillion. Net tax receipts stood robust at INR 12.29 trillion, reflecting continued revenue growth. Government expenditure remains elevated, aligning with budgeted fiscal stimulus and capital outlays.
                                        
                        
	India's fiscal deficit for April to September 2025 is reported at INR 5,731.23 billion, which is 36.5% of the budgeted fiscal deficit target for FY26. This reflects the government's ongoing fiscal expansion to support economic growth while managing inflationary pressures. The net tax revenue recorded INR 12,293.70 billion during this period, indicating sustained tax collection momentum driven by corporate and individual income taxes.
	 
	Government spending remains significant with key allocations to capital expenditure aimed at infrastructure development and social welfare schemes. The fiscal deficit levels are higher compared to the same period last year, mainly due to increased expenditure and strategic fiscal policies to promote growth.
	 
	The government continues to focus on balancing fiscal prudence with developmental priorities, aiming to keep the full-year fiscal deficit within the estimated 4.4% of GDP target. Efforts to augment tax compliance and broaden the tax base have contributed to the stronger-than-expected revenue collections.
	 
	Key Highlights
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		Fiscal deficit for April-September 2025: INR 5.73 trillion (36.5% of FY26 target).
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		Net tax receipts stood at INR 12.29 trillion, supporting fiscal stability.
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		Government expenditure remains robust, emphasizing capital and social spending.
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		Fiscal deficit higher than last year due to proactive fiscal policies.
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		Full-year fiscal deficit target remains at 4.4% of GDP for FY26.
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		Tax revenue growth driven by corporate and personal income tax collections.
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		Fiscal strategy balances growth stimulus with fiscal consolidation goals.
	Sources: Ministry of Finance, Controller General of Accounts (CGA), Reuters, Economic Times, Financial Express