India's fiscal deficit reached Rs 9.76 lakh crore, or 62.3% of the full-year budget target, by the end of November 2025. This widening deficit, compared to 52.5% in the previous year, is attributed to a 28% increase in capital expenditure and lagging tax revenues, partly due to GST rate cuts. However, robust non-tax revenue collection and potential expenditure savings are expected to help the government meet its 4.4% of GDP deficit target for the fiscal year.