India boosts capital spending over 23% as fiscal deficit rises
Business
India just boosted its capital spending by more than 23% between April and June 2026, outpacing revenue growth, which was just over 11%.
This bigger spend means the fiscal deficit (basically, how much more the government spent than it earned) rose to 18.2% of the yearly target, a bit higher than last fiscal year's (2025-26) 17.9%.
Net tax ₹6.36L/cr and spending ₹13.57L/cr
Net tax revenues hit ₹6.36 lakh crore this quarter (22.2% of the year's goal), helped by a strong jump in corporate taxes (up 19.7%).
On the flip side, GST collections dropped by 11%, pulling indirect taxes down 7.6%.
Total government spending reached ₹13.57 lakh crore as India keeps pushing investments despite global challenges and lower excise duty collections.