India's Fiscal Deficit Soars to 62% by November Amid Capex Push, Lagging Tax Inflows

• India's fiscal deficit hit 62.3% of its annual target by November FY26, significantly higher than 52.5% last year, reaching Rs 9.76 lakh crore.
• The higher deficit is driven by increased government spending, particularly on capital expenditure, and a slower pace of tax revenue collection.
• Net tax revenue stood at 49.1% of Budget Estimates, below last year's 56%, while overall revenue receipts also lagged previous year's performance.
• Capital expenditure reached 58.7% of the annual target, up from 46.2% last year, reflecting a strong focus on infrastructure and long-term capacity building.
• This investment push has boosted industrial output, with IIP at a 25-month high and construction goods growing by 12%.

Why It Matters: India's fiscal deficit widened significantly due to robust capex and slower tax collection.