Fiscal hawks in India can breathe easier: the April-December FY26 deficit settled at ₹8.55 lakh crore, or 54.5% of the ₹15.7 lakh crore budget estimate—a notch better than 56.7% last year. Friday’s finance ministry update reaffirms the nation’s consolidation drive.
Strong revenue momentum propelled receipts to 72.2% of target at ₹25.25 lakh crore, with spending paced at 66.7% or ₹33.81 lakh crore. Tax kitty swelled to ₹19.4 lakh crore (up from ₹18.4 lakh crore), non-tax to ₹5.4 lakh crore, enabling measured expenditure growth to ₹33.8 lakh crore.
Infrastructure capex stole the show, climbing 14% to ₹7.9 lakh crore to power highways, railways, and ports—vital for jobs and productivity. Tax sharing with states hit ₹10.38 lakh crore, up ₹1.37 lakh crore YoY.
Targeting 4.4% of GDP for FY26 (from 4.8% FY25), the plan minimizes debt overhang, boosts credit availability, and paves way for private-led growth. These figures highlight prudent management, fortifying India’s economic foundations amid ambitious targets.