India’s April-January fiscal deficit widens to Rs 11.7 lakh crore

Capex spending was at Rs 6.9 lakh crore or 61.7 percent of the budgetary goal of Rs 11.1 lakh crore

India’s fiscal deficit widened to Rs 11.7 lakh crore, or 74.5 percent of the full-year target, in the first 10 months of the year, despite capex spending lagging behind, data released by the government on February 28 shows.

The capex spending at Rs 7.6 lakh crore was 74.4 percent of the revised estimate of Rs 10.2 lakh crore.

The government is expecting the fiscal deficit to also settle lower at Rs 15.7 lakh crore compared with the Budget estimate of Rs 16.13 lakh crore.

As a ratio of GDP, the fiscal deficit is likely to be 4.8 percent compared with the 4.9 percent target set by the government.

In the Budget presented earlier this month, the government kept the fiscal deficit target of 4.4 percent of the GDP, fulfilling its long-term commitment to bring the deficit down to 4.5 percent or below.

The capex target has been set at Rs 11.2 lakh crore, slightly higher than the Rs 11.11 lakh crore target set in FY25 Budget.

The size of the government is set to cross Rs 50 lakh crore for the first time.