India’s fiscal deficit at 33% of FY25 target as September-half tax collections hold firm

The Indian government’s fiscal deficit for April-September 2025 reached ₹6.37 trillion, or about 33% of the FY25 target. Net tax receipts grew 17% year-on-year to ₹11.8 trillion, driven by GST and corporate-tax collections. Capital expenditure rose 12% to ₹X trillion during the period, underlining the government’s commitment to infrastructure investment amid uncertainty. Economists say the fiscal path remains credible and supports India’s sovereign-rating outlook. However, they caution that any sharp oil-price rise or global demand weakness could increase subsidy burdens and tilt the margin of safety.