The Centre’s fiscal deficit touched ₹7.1 lakh crore in the first five months of FY2026-27, or 41.9 per cent of the full-year target of ₹16.96 lakh crore, official data released on Wednesday showed. The full-year target equals 4.3 per cent of GDP. Net tax receipts stood at ₹8.4 lakh crore in the April–August period, while capital expenditure reached ₹5.1 lakh crore. The numbers reflect the government’s front-loading of infrastructure spending early in the fiscal year. Economists said the deficit was broadly on track, with revenues expected to pick up in the second half as tax collections strengthen. The government has committed to narrowing the fiscal deficit to 4.3 per cent of GDP this year, continuing its fiscal consolidation path. The data will be watched closely by bond markets, which take cues from the government’s borrowing programme. Context: Fiscal consolidation is the government’s plan to shrink the gap between what it earns and what it spends, which influences borrowing costs and interest rates.