Centre's fiscal deficit hits 41.9% of target by August end

India's fiscal deficit reached 41.9% of the budgeted target for 2026-27 by the end of August 2026 due to higher subsidy spending on items like fertilisers.

Data from the Controller General of Accounts shows total revenue stood at ₹13.7 lakh crore while total expenditure touched ₹20.8 lakh crore between April and August 2026.

Bank of Baroda chief economist Madan Sabnavis expects the full-year fiscal deficit ratio to be contained around 4.5 to 4.6% as the economy is projected to grow over 7% in real terms.