Fiscal Deficit

According to the IMF’s Fiscal Monitor, India’s fiscal consolidation is set to lose momentum after FY26, signalling deep-rooted structural limits in its public finances

India's April-September fiscal deficit at 36.5% of FY26 target

The government has exhausted 51.8 percent of the full-year capex target of Rs 11.2 lakh crore

Fiscal deficit widens at 38.1% of FY26 target during first five months

The Rs 2.7 lakh crore dividend transfer from the Reserve Bank of India has helped provide some cushion, but international agencies are expecting a slippage in this year's fiscal deficit.

Chart of the Day | How lower indirect taxes could ease pressure on inflation

With recent GST reforms easing inflationary pressures and fiscal deficit projections intact, Mint Road gains more policy space while staying firmly data dependent.

GST reform to stimulate consumption but may reduce government's revenue: Moody's

The note said that the Centre may slow down some of the government spending over the next two quarters, which may preserve the trend of fiscal consolidation. Aside of that, the GST reform may also impact the government's efforts to reduce debt.

Fiscal deficit higher at 29.9% of FY26 target during first four months of the year

The rise in fiscal deficit follows an increase in capital spending since the start of the year by the central government.

16th Finance Commission may ask states to opt for more revenue mobilising steps amid slowdown

The commission is expected to come out with a report by October 31, covering a period of five years from April 2026.

Fiscal deficit for June quarter at 17.9% of full-year target, a quarter of annual capex spent

A higher-than-expected RBI dividend played a key role in containing the impact of increased capital expenditure during the quarter.

India reports fiscal surplus in May as RBI delivers another bumper dividend

The RBI dividend stands higher than the Rs 2.56 lakh crore the government had budgeted to receive from the central bank and public sector financial institutions.

India’s combined fiscal deficit to be 7% of GDP in FY26: Morgan Stanley Research

The central government’s fiscal deficit will consolidate gradually, reaching 4.4 percent of GDP in FY26, while the states’ deficit is expected to narrow to 2.6 percent

Fiscal glide path 'sincerely followed', will achieve 4.5 percent deficit target, says FM Sitharaman

FM Sitharaman outlined Centre's commitment to fiscal prudence, and said the government gave itself a 'year-by-year target' to bring down deficit below 4.5 percent by FY26. "That’s exactly what we’ve been following without fail, each year,” added the Finance Minister.

April-February fiscal deficit lower at Rs 13.5 lakh crore, capex spending also slower at 80% of FY25 target

India's capex lagged at Rs 8.1 lakh crore, and with a month to go, Centre may have to spend Rs 2.1 lakh crore in March to reach the Budget target of Rs 10.2 lakh crore for FY25.

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

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

The Budget’s focus on growth, fiscal prudence is bullish for equities

The Budget’s focus on boosting both consumption and capex is supportive for Indian equities, especially for healthcare, financials and consumer-related sectors

Tax cuts won’t be inflationary, fiscal consolidation path intact, says finance secretary

Rejecting the notion that the Budget is skewed towards either consumption or capital expenditure, Tuhin Kanta Pandey tells Moneycontrol that the government has ensured a balanced approach

Govt hopeful of ratings upgrade as Budget draws debt-reduction roadmap

S&P Ratings was the only agency to have recently revised India’s outlook to positive from stable earlier this year

What is driving Budget 2025's tight fiscal-deficit target and new financial anchor?

The deficit target surprised various market participants who had expected more generous spending to spur growth. But market experts say that there are other reasons for sticking to prudence.

MC Interview: Centre can't keep hiking capex by 25-30% each year, says Expenditure Secretary Manoj Govil

Govil, in an exclusive interaction with Moneycontrol, spoke on a range of issues from the fiscal implications of the 8th Pay Commission to the chances of a rating upgrade.

No plans to go back to FRBM target of 40% debt-to-GDP ratio immediately, says Expenditure Secy Manoj Govil

In the Budget for 2025-26, the Centre said that from financial year 2026-27, it will target a fiscal deficit that will bring down its debt-to-GDP ratio in the 49-51 percent range by 2030-31.

Starting FY27, Centre to bring down debt-to-GDP ratio to 49-51% by FY31

Presenting the Budget for 2025-26, Finance Minister Nirmala Sitharaman reiterated the Centre's commitment to link its fiscal deficit glide path to debt-to-GDP ratio

FY26 gross borrowing shoots up to Rs 14.82 lakh crore on repayments

In the first half of current financial year, the Centre has borrowed nearly Rs 7 lakh crore and plans to borrow Rs 6.61 lakh crore in the second half.

Finance Minister stays on fiscal consolidation path, pegs fiscal deficit at 4.4% of the GDP for FY26

The fiscal deficit number is in line with the MC poll of 15 economists which pegged it at 4.5 percent of the GDP

India's April-December fiscal deficit at Rs 9.14 lakh crore or 56.7% of FY25 target

India’s fiscal deficit at Rs 8.5 lakh crore had crossed the half way mark in the first eight months of the year

Budget 2025: How does India’s fiscal position compare to its Asian peers?

Thanks to populist policies, India’s general government expenditure, as a proportion of GDP, is much higher than that of its Asian peers

Will FM Sitharaman go gangbusters in Budget 2025 to bring India's growth mojo back?

Even though economists have come up with suggestions to relax the fiscal deficit glide path and focus entirely on spending big to put the economy back on the growth path, the government is unlikely to deviate from the consolidation roadmap.