In a boost to India’s economic narrative, the fiscal deficit for the first nine months of FY26 moderated to 54.5% of the budgeted ₹15.7 lakh crore, totaling ₹8.55 lakh crore. Finance Ministry data released Friday shows better-than-expected performance against last year’s 56.7% pace.
Receipts reached ₹25.25 lakh crore (72.2% of annual target), slightly ahead of last year’s 72.3%, while total outgo at ₹33.81 lakh crore (66.7%) was contained below prior levels. Net taxes jumped 5.4% YoY to ₹19.4 lakh crore, with non-tax revenues up 20% to ₹5.4 lakh crore.
Capex allocations shone bright, rising to ₹7.9 lakh crore from ₹6.9 lakh crore, fueling growth in transport infrastructure amid a push for employment generation. States got a record ₹10.38 lakh crore in devolution, 15% more than before.
FM Sitharaman’s FY26 goal of 4.4% GDP deficit continues the downward trajectory from FY25’s 4.8%. This strategy eases borrowing pressures, enhances banking sector liquidity, and supports private capex—key to achieving robust GDP growth and inflation control.
As global uncertainties loom, India’s fiscal metrics underscore resilience and strategic foresight, setting the stage for accelerated development.