India's Fiscal Deficit Narrows to 63% of Full-Year Target by January 2026

India's fiscal deficit for April to January stood at Rs 9.81 lakh crore, or 63% of the full-year target for 2025-26, narrowing from 74.5% in the same period last year. Total receipts reached Rs 27.09 lakh crore (79.5% of the budget estimate), with tax revenue at Rs 20.94 lakh crore and non-tax revenue at Rs 5.57 lakh crore, boosted by a higher Reserve Bank of India dividend. Total expenditure was Rs 36.90 lakh crore (74.3% of the estimate), with capital spending prioritized to support growth. The government aims to reduce the fiscal deficit to 4.4% of GDP this year and 4.3% in 2026-27, maintaining fiscal consolidation alongside infrastructure investment.