Ira Singh 
India's fiscal deficit for the April-February period stood at Rs 13.5 lakh crore, accounting for 85.8 percent of the full-year target, according to official data released on March 28. This is slightly lower than the 86.5 percent deficit recorded in the same period last year.
Capital Expenditure Falls Behind Target
Capital expenditure (capex) spending has also been sluggish, reaching Rs 8.1 lakh crore by February-end—80 percent of the Rs 10.2 lakh crore target for FY25. With just one month remaining in the fiscal year, the Centre may need to accelerate spending by Rs 2.1 lakh crore in March to meet its budgeted capex target. This is a lower utilisation rate compared to the 85 percent achieved during the corresponding period in FY24.
Fiscal and Revenue Trends
The government had set the fiscal deficit target at 4.4 percent of GDP in the Budget presented on February 1. While capex for FY26 has been projected at Rs 11.2 lakh crore slightly higher than the Rs 11.11 lakh crore target for FY25 revenue expenditure in the first 11 months of FY25 was reported at Rs 30.8 lakh crore, amounting to 83.3 percent of the full-year estimate. This is marginally higher than the 83.1 percent achieved in the same period of the previous fiscal. According to information, Net tax revenue stood at 78.8 percent of the annual target, compared to 79.6 percent in FY24, indicating a slowdown in collections.
Government Borrowing and Expenditure Trends
The government’s borrowing plans indicate a 5.7 percent increase in FY26, with total borrowing expected to reach Rs 14.82 lakh crore. As seen in previous years, borrowing is likely to be frontloaded, with data released on March 27 showing that Rs 8 lakh crore—54 percent of the target—will be raised in the first half of FY26.Total expenditure in April-February stood at 82.5 percent of the full-year estimate of Rs 47.2 lakh crore, slightly lower than the 83.4 percent utilization rate recorded during the same period last year, stated offical release.
(Business Correspondent)
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