India's fiscal deficit rose sharply in the first five months of the current financial year, driven by a surge in government capital expenditure and weaker tax collections, according to official data released on Tuesday.

The Union government reported a fiscal deficit of Rs 5.98 trillion for April–August 2025, amounting to 38.1% of the full-year target. This compares with Rs 4.35 trillion during the same period in 2024–25, data from the Controller General of Accounts (CGA) showed. Advertisement

Despite the uptick, the Centre remains committed to fiscal consolidation. The deficit for FY26 is projected at Rs 15.69 trillion, or 4.4% of GDP, lower than the Rs 16.85 trillion recorded in FY25. Finance Minister Nirmala Sitharaman reiterated this glide path in her Union Budget speech earlier this

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