India’s fiscal deficit reached Rs 7,10,249 crore by the end of August, or 41.9 per cent of the full-year target of Rs 16.96 lakh crore, government data showed.

Net tax revenue stood at Rs 8.38 lakh crore, while total expenditure was Rs 20.78 lakh crore in the first five months of the financial year. The government has targeted a fiscal deficit of 4.3 per cent of GDP for the year.

The data, released by the Controller General of Accounts, shows spending is broadly on track. Economists said the deficit numbers are in line with seasonal patterns, with tax collections expected to pick up in the second half.

The government has committed to a path of fiscal consolidation, aiming to bring the deficit down steadily over the coming years. Strong GST collections and direct tax growth have supported revenues.

Analysts said meeting the 4.3 per cent target will depend on maintaining spending discipline and achieving budgeted tax collections. The numbers will be watched closely ahead of the next budget cycle.