RBI reports FY 2025‑26 April‑July deficits rose, driven by higher spending and weaker tax receipts.

• Revenue and capital expenditures increased, outweighing growth in indirect tax collections compared to last year.
• Direct tax collection fell sharply, especially income tax, causing the primary slowdown in revenue receipts.
• States' gross fiscal deficits rose, exceeding budget estimates more than in the same period previously.