India’s fiscal deficit remained contained at 27 percent of the full year number, according to data released by the government on September 30.

Capital spending dipped again in August compared with the previous year.

In July, capex had risen 110 percent compared with the previous year. It was lower at

However, despite the increase capex remains lower than the previous year. In the first five months of the fiscal, the government has spent 27.1 percent of the Budgeted estimate of Rs 11.11 lakh crore as compared with 37.4 percent spending during similar period last year.

Tax collection also helped keep fiscal deficit contained, as revenue collection was 38.6 percent of full year target in the first five months compared with 38.5 percent during April-August 2023.

The government keeping to its market borrowing target is also likely to help contain fiscal deficit, besides the surprisingly higher dividend from the Reserve Bank of India.

Borrowing calendar for second year showed that the government is expecting to rake up Rs 6.61 lakh crore, in line with the Budget, in the second half of the year, of which a significant proportion is to come from longer-tenure securities.