India’s fiscal deficit hit 17.9% of FY26 target in Q1, up from 8.4% a year earlier despite RBI support.

• Capital expenditure rose to Rs 2.75 lakh crore, 24.5% of target, sharply higher than last year’s 16.3% in Q1.
• Tax collections slowed to 19% of target, below last year’s 21.3%, impacting fiscal balance.
• RBI’s Rs 2.69 lakh crore dividend cushioned deficit, helping maintain the 4.4% fiscal deficit target.