India's Fiscal Deficit Hits 18.2% of Annual Target in Q1

India's fiscal deficit for the first quarter of FY27 reached ₹3.1 lakh crore, accounting for 18.2% of the full-year budget target, according to CGA data released July 31, 2026.

The deficit widened from ₹2.8 lakh crore in the same period last year, primarily due to a 66% surge in government capital expenditure during the month of June.

The government's subsidy bill also saw a notable increase, reflecting higher spending commitments that the Finance Ministry is monitoring to ensure adherence to the annual fiscal glide path.