India's fiscal deficit touched Rs 7.1 lakh crore in the April-August period of the current financial year, reaching 41.9 percent of the full-year target, according to data from the Controller General of Accounts.

The fiscal deficit is the gap between the government's total spending and its revenue, excluding borrowings. A lower ratio early in the year usually signals comfortable finances.

Economists say the numbers are in line with seasonal trends, as government spending typically picks up in the second half of the year while tax collections gather pace.

The government has set a fiscal deficit target for FY27 as part of its glide path towards fiscal consolidation. Strong tax revenues and the RBI's surplus transfer have supported the math so far.

The data will be watched closely ahead of the festive season, when both spending and collections tend to rise.

Economists say the deficit numbers so far suggest the government is on track to meet its full-year target. However, they caution that any shortfall in disinvestment proceeds or a global slowdown could put pressure on the math in the second half.