The fiscal deficit for the first six months of FY26 was a tad higher at 36.5 percent compared with 29.4 percent during a similar period last year, according to data released on October 31.
The government has exhausted 51.8 percent of the full-year capex target of Rs 11.2 lakh crore, compared with the 37.3 per cent it had achieved in the first half of FY25.
Of the Rs 5.8 lakh crore, Rs 1.5 lakh crore was spent in September alone, making a 30 percent increase from the previous year. The government had spent Rs 1.6 lakh crore in April.
Loan disbursal under the capex spending is also double of last year's number of Rs 55,398 crore during April-September.
The government's total spending has risen at a slower pace having utilised 45.5 percent of the FY26 Budget target of Rs 50.7 lakh crore, compared with 43.8 percent in April-September of 2024.
Net tax revenue has been lower as well at 43.3 percent compared with 49 percent during H1FY25. The GST rationalisation, effective September 22, is likely to weigh on revenue collection. The government is hoping consumption bump to cover some of that loss in revenue.
Two-wheeler sales were 21.5 percent higher during festive period compared with the previous year, while UPI and e-commerce transactions also indicate a bump in spending.
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