The Centre remains confident of meeting its fiscal deficit target of 4.4% of GDP in FY26, even as the shortfall touched 36.5% of the full-year target in the first half (April–September) of 2025-26, govt sources tell Business Today TV.

Official data released by the Controller General of Accounts showed the fiscal deficit at Rs 5.73 Lakh crore, up from Rs 4.75 lakh crore in the same period last year. Advertisement

Fiscal deficit is the gap between the government’s total expenditure and total receipts, excluding borrowings, which reflects how much the Centre needs to borrow to bridge its spending and income gap.

The higher deficit in the first half was largely driven by muted tax revenue growth and front-loaded transfers to states, alongside a sharp rise in capital expenditure (capex). Th

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