India's fiscal deficit doubles in April-June quarter

Business Jul 31, 2025

India's fiscal deficit for April-June 2025 shot up to ₹2.81 trillion—almost double last year's figure for the same period.
This jump, which already covers nearly 18% of the yearly target, is mainly because the government started spending big on infrastructure and growth projects right out of the gate after the elections.

Early government spending on infrastructure drives up deficit

Government spending reached ₹12.22 trillion this quarter, with capital investments alone hitting ₹2.75 trillion.
While tax collections dipped a bit, non-tax revenues picked up and helped balance things out.
Subsidy costs stayed steady overall—food subsidies dropped but fertilizer support went up—keeping the deficit from growing even faster as India bets on early investment to boost future growth.