Page 2 - Latest Updates on Fiscal Deficit
Road, rail and defence lead FY26 capex surge; overall spend at 52%
Road Transport & Highways and Railways ministries lead capital expenditure in H1 FY26, with overall government capex reaching 52% of Budget estimates despite slower revenue growth
 "Road, rail and defence lead FY26 capex surge; overall spend at 52%")
Thin ice: States are drowning in debt and politics keeps adding weight
Cash transfers to women need a wider debate
 "Thin ice: States are drowning in debt and politics keeps adding weight")
Centre's fiscal deficit in H1 stood at 36.5% of full-year target
In H1 of FY26, capex grew at a robust 40 per cent, exhausting more than half (51.8 per cent) of the Rs 11.2 trillion full year target against 37.3 per cent spending during the same period a year ago
 "Centre's fiscal deficit in H1 stood at 36.5% of full-year target")
India's Apr-Sep fiscal deficit hits ₹5.73 trillion, 36.5% of FY26 estimate
The Centre's receipts stood at ₹17.3 lakh crore, or 49.5% of the FY26 target, while expenditure reached ₹23.03 lakh crore, or 45.5% of the estimate, led by higher interest and subsidy payments
 "India's Apr-Sep fiscal deficit hits ₹5.73 trillion, 36.5% of FY26 estimate")
Fiscal deficit widens to 38% of BE on higher capex, weak taxes: CGA
India's fiscal deficit rose to 38.1 per cent of FY26 budget estimates in April-August, driven by higher capital expenditure and muted revenue receipts, CGA data showed
 "Fiscal deficit widens to 38% of BE on higher capex, weak taxes: CGA")
India's Apr-Aug fiscal deficit widens to ₹5.98 tn, 38.1% of FY26 target
Net tax receipts stood at ₹8.1 trillion, down from ₹8.7 trillion in the same period last year, while non-tax revenue rose to ₹4.4 trillion from ₹3.3 trillion a year ago
 "India's Apr-Aug fiscal deficit widens to ₹5.98 tn, 38.1% of FY26 target")
Fiscal discipline must to promote growth: RBI Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra calls on states to maintain fiscal discipline, improve expenditure quality and borrow responsibly while coordinating closely with the central bank
 "Fiscal discipline must to promote growth: RBI Governor Sanjay Malhotra")
Centre may meet FY26 fiscal deficit target despite GST overhaul: Fitch
Separately, Bank of Baroda in a report said the impact of GST reforms will be minimal as it accounts for Rs 48,000 crore or only around 0.1-0.2 per cent of the GDP
 "Centre may meet FY26 fiscal deficit target despite GST overhaul: Fitch")
India's reforms give cushion against global uncertainty: CEA Nageswaran
Chief Economic Advisor V Anantha Nageswaran said GST overhaul and structural reforms will strengthen India's resilience to global risks and help meet the fiscal deficit target
 "India's reforms give cushion against global uncertainty: CEA Nageswaran")
Moderate impact of GST cuts on fiscal deficit; inflation may lower 50-90bps
Besides, a cut in the tax rate on nearly one-fourth of the essential and household items contained in inflation basket may lead to a moderation of 50-90 bps in retail inflation over next 12 months
 "Moderate impact of GST cuts on fiscal deficit; inflation may lower 50-90bps")
New GST rates: Govt bonds rally as revenue loss concerns subside
Government bonds rallied as the estimated revenue loss from GST tax cuts came in lower than expected, easing fiscal concerns. The yield on the benchmark 10-year bond eased to 6.49%
 "New GST rates: Govt bonds rally as revenue loss concerns subside")
GST rate cut may ease CPI inflation by 25bps; 40bps dent on fiscal deficit
Here's how analysts leading brokerages assess the impact of the GST rate rejig on the Indian economy, bond markets and the possibility of an aggressive interest rate cut by the Reserve Bank of India
 "GST rate cut may ease CPI inflation by 25bps; 40bps dent on fiscal deficit")
Revenue deficit, capital spends: Key takeaways from 15th finance commission
The 15th FC had recommended a sizeable Rs. 2.9 trillion as revenue deficit grants (RDG) to a select number of states for FY2022-FY2026
 "Revenue deficit, capital spends: Key takeaways from 15th finance commission")
On track to achieve fiscal deficit target of 4.4% for FY26: DEA Secy Thakur
The Centre estimates the fiscal deficit during 2025-26 at 4.4 per cent of the GDP, or Rs 15.69 trillion
 "On track to achieve fiscal deficit target of 4.4% for FY26: DEA Secy Thakur")
Fiscal deficit at 29.9% of budget estimates in April-July FY26: CGA data
April-July data shows rising capex and RBI dividend boost, but tax revenue contraction widened India's fiscal deficit
Govt confident of meeting fiscal deficit target despite planned tax cuts
In the biggest tax overhaul since 2017, PM Modi on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper
 "Govt confident of meeting fiscal deficit target despite planned tax cuts")
Bond market sees best day in 2 months after S&P upgrades India's rating
S&P raises India's sovereign rating to BBB from BBB-, the first upgrade since 2007, citing fiscal discipline and infrastructure push, triggering a G-sec rally
 "Bond market sees best day in 2 months after S&P upgrades India's rating")
India may miss FY26 fiscal deficit target of 4.4% on slower growth: BMI
BMI projects India's fiscal deficit to narrow to 4.5% of GDP in FY26, citing slower growth, tariff risks, and higher state spending as challenges to fiscal consolidation
States must fix their own economies, address deeper structural cracks
The data suggests that of all states and Union Territories, 12 had their debt-to-GSDP ratio higher than 35 per cent in 2023-24, while around 24 had their debt above 20 per cent
 "States must fix their own economies, address deeper structural cracks")
India in Flux offers up new ways to think about complex challenges ahead
Few could have played the role Shankar Acharya did-navigating political, fiscal, and global pressures with clarity and conviction
 "India in Flux offers up new ways to think about complex challenges ahead")