India’s fiscal deficit widened to INR 7.1 trillion in April-August 2026-27, up from INR 6.0 trillion a year earlier, reaching 41.9% of the full-year target, compared with 38.1% previously. Total expenditure rose 10.5% year-on-year to INR 20.8 trillion, while capital spending increased to INR 5.1 trillion from INR 4.3 trillion, reaching 41.7% of the annual target. Total receipts rose 6.6% to INR 13.7 trillion, supported by higher net tax revenue of INR 8.4 trillion, up from INR 8.1 trillion a year earlier. Non-tax revenue also increased to INR 4.5 trillion from INR 4.4 trillion. India is targeting a fiscal deficit of INR 17.0 trillion, or 4.3% of GDP, for 2026-27.