India's fiscal deficit hits ₹4.68 lakh crore in 4 months
India's fiscal deficit has hit ₹4.68 lakh crore in just the first four months of FY26—that's almost 30% of the full-year target.
The main reason? The government has sharply increased capital expenditure, which reached ₹3.47 lakh crore, or 30.9% of the annual target, compared with 23.5% in the same period last year.
Total government spending from April to July
From April to July, total government spending touched ₹15.64 lakh crore.
On the revenue side, non-tax income got a solid boost thanks to a hefty ₹2.1 lakh crore dividend from the Reserve Bank of India, bringing non-tax revenue up to ₹4.04 lakh crore. Gross tax revenue also rose to ₹10.93 lakh crore, but net tax collections are lagging a bit after recent income tax cuts.
Looking ahead: The government is planning some GST changes before Diwali—expect tweaks to major tax slabs (5% and 18%) soon, which could shake up how much money comes in from taxes next year.