India on course to meet 4.4% fiscal deficit target
What's the story
India is on course to meet its fiscal deficit target of 4.4% for FY26, Economic Affairs Secretary Anuradha Thakur has said. The assurance comes despite some temporary mismatches in monthly numbers. Thakur attributed the growth to strong economic fundamentals, robust government capital expenditure (capex), and positive private consumption trends.
Target assurance
Fiscal deficit numbers may not give correct picture
Thakur addressed concerns over the government's ability to meet its fiscal deficit target of 4.4% for FY26. She said that the quarter-by-quarter or month-by-month assessments of fiscal deficit numbers may not give a correct picture due to temporal mismatches on the receipt and expenditure side. "On the overall fiscal deficit numbers, our assessment so far is that we will be able to achieve the target," she told PTI in an interview.
Fiscal projection
Government projects fiscal deficit of 4.4% of GDP
The Indian government has projected a fiscal deficit of 4.4% of GDP, or ₹15.69 lakh crore, for FY26. Thakur stressed that the fundamentals of the economy are strong and private consumption numbers are showing positive movement. She also highlighted that gross capital formation numbers indicate strong public and private capex with expectations of stability in the coming quarters.
GDP performance
Economy grew stronger-than-expected
India's economy grew by a stronger-than-expected 7.8% in the April-June quarter, its fastest pace in five quarters. Thakur said this growth rate reflects the broad-based nature of the economic expansion and "the basic resilience of our economy." She also noted that it is anchored in strong macroeconomic fundamentals with good performance from manufacturing, construction, and service sectors as well as agriculture.