India’s fiscal deficit widened to INR 7.1 trillion in April-August 2026-27 from INR 6.0 trillion a year earlier, reaching 41.9% of the full-year target versus 38.1% previously. Total expenditure rose 10.5% year on year to INR 20.8 trillion, including capital spending of INR 5.1 trillion, up from INR 4.3 trillion and equivalent to 41.7% of its annual target. Total receipts climbed 6.6% to INR 13.7 trillion, including net tax revenue of INR 8.4 trillion versus INR 8.1 trillion and non-tax revenue of INR 4.5 trillion versus INR 4.4 trillion. India’s fiscal deficit target for 2026-27 is INR 17.0 trillion, or 4.3% of GDP. Separately, external debt rose by USD 15.4 billion during the quarter to a record USD 778.2 billion at end-June 2026, surpassing the previous peak of USD 767.3 billion in December 2025. Long-term debt increased by USD 11.2 billion to USD 624.7 billion, while short-term debt rose by USD 4.3 billion to USD 153.5 billion, increasing its share to 19.7% from 19.6%. General-government debt rose by USD 6.8 billion to USD 174.3 billion, while higher company and deposit-taking corporation liabilities drove growth in non-government debt.