Current Affairs - Economy - Discussion

India’s fiscal deficit for April–November FY26 reached 62.3% of the full-year Budget Estimate, amounting to ₹9.77 trillion. This rise is attributed to a significant 28% increase in capital expenditure aimed at infrastructure development, while net tax revenue growth lagged, declining to 49.1% of the FY26 target. The fiscal deficit indicates the gap between government spending and receipts, highlighting the need for borrowing to meet expenditure. Front-loaded capital spending, slower revenue mobilization, and adjustments like IGST settlements contributed to this higher share, reflecting pressures on fiscal management and macroeconomic stability during the first eight months of the year.