Fiscal deficit pressure mounts should the government trim capital spending to stay on target

Published on 24 April 2026

Tax collections missed and growth cooled

Lower-than-budgeted tax collections and softer nominal GDP growth are squeezing India’s fiscal assumptions, raising the risk that the government may need to cut capital expenditure. The move would be aimed at protecting the 2025–26 fiscal deficit target, even as weaker revenues and growth make budget math harder to meet.

Tax collections are coming in below budget
Softer nominal GDP growth strains fiscal projections
Government may consider cutting capital expenditure
Goal is to protect the 2025–26 deficit target

#capex #budget 2025-26 #nominal gdp #tax collection #fiscal deficit

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Fiscal deficit pressure mounts should the government trim capital spending to stay on target

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