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Capex in June 2025 quarter stands at Rs 2.75 lakh crore, or 24.5% of the FY26 target, which is well above the 16.3% recorded in the first quarter of FY25.
India’s fiscal deficit during April-June 2025.
India’s fiscal deficit for the April-June quarter reached 17.9 per cent of the full-year FY26 target, significantly higher than the 8.4 per cent recorded in the same period last year, according to the official data released on July 31.
The increase in the deficit was primarily driven by a surge in capital expenditure (capex) and relatively lower tax collections. However, a higher-than-expected dividend from the Reserve Bank of India (RBI) helped cushion the impact of the increased spending.
Fiscal deficit is the gap between the government’s total expenditure and its total revenue (excluding borrowings), indicating how much the government needs to borrow to meet its expenses.
Capex during the June 2025 quarter stood at Rs 2.75 lakh crore, or 24.5 per cent of the FY26 target, which is well above the 16.3 per cent recorded in the first quarter of FY25.
Meanwhile, tax collections accounted for 19 per cent of the full-year target, falling short of last year’s 21.3 per cent. Total government expenditure during the quarter reached 24.1 per cent of the FY26 target of Rs 50.65 lakh crore, up from 20.1 per cent in the same period last year.
The RBI had announced a record transfer of Rs 2.69 lakh crore for FY25 — 27 per cent higher than the previous year’s transfer of Rs 2.11 lakh crore. Experts say this additional inflow is likely to help contain the fiscal deficit within the 4.4 per cent target, with some suggesting that the final number could even fall to 4.2 per cent.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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