India’s fiscal deficit hits 36.5% of annual target by September

India’s government reported that by the end of September the fiscal deficit reached ₹5.73 trillion (≈US$65.2 billion), amounting to 36.5% of the 2025-26 budgeted target. The figures reflect elevated spending and moderated revenue growth in the first half of the year. Analysts say the gap narrows the policy buffer and could influence upcoming bond issuance and interest-rate sensitivity. The Reserve Bank of India (RBI) and markets will closely watch how the deficit impacts bond yields and fiscal-monetary coordination.