New Delhi, Oct. 1 -- India's fiscal deficit rose in the first five months of 2025-26, as compared with the same period last year, due to higher government capital expenditure while net tax revenue declined. The Union government reported a fiscal deficit of Rs.5.98 lakh crore for April-August, amounting to 38.1% of the target for the entire 2025-26 fiscal year, according to data released by the Controller General of Accounts on Tuesday. For the same period last year, the fiscal deficit was Rs.4.35 lakh crore. The government has maintained a strong commitment to fiscal consolidation, with the deficit for FY26 projected at Rs.15.69 lakh crore, lower than the Rs.16.85 lakh crore reported in FY25, and pegged at 4.4% of the Gross Domestic Product (GDP). Finance minister Nirmala Sitharaman had reiterated this target in her budget speech earlier this year, affirming the Centre's glide path to reduce fiscal deficit to 4.4% of GDP by 2025-26. Fiscal deficit, or the shortfall between government spending and revenue, excluding borrowings, shows how much the government must borrow to meet its expenses. The latest data appears to reflect front-loaded capital expenditure in early FY26, particularly a resurgence in spending, which had slowed during the first quarter of FY25 due to the national election. In April-August FY26, capital expenditure surged to Rs.4.32 lakh crore, or 38.5% of the annual target, a marked increase from Rs.3.01 lakh crore in the same period a year ago. Overall central government expenditure rose to Rs.18.81 lakh crore in the first five months of FY26, or 37.1% of the full-year target, compared to Rs.16.52 lakh crore during the year-earlier period. Revenue expenditure, including interest payments, subsidies, and salaries, stood at Rs.14.49 lakh crore, or 36.7% of the full-year estimate, up from Rs.13.51 lakh crore a year ago. On the revenue side, net tax collections increased from Rs.8.74 lakh crore a year ago to Rs.8.10 lakh crore, accounting for 28.6% of the annual goal. To be sure, the Centre's move to grant income tax rebates for those earning up to Rs.12 lakh a year, announced in the latest Union Budget, has delivered a boost to household spending, but dented direct tax revenues. Non-tax revenue jumped to Rs.4.40 lakh crore, or 75.5% of the full-year estimate. Combined, total revenue receipts climbed to Rs.12.83 lakh crore, covering 36.7% of the FY26 target, up from Rs.12.17 lakh crore in April-August FY25. While moderate fiscal deficits can help sustain economic momentum, a sharp rise would raise concerns over inflationary pressures and rising public debt. Policymakers, therefore, face the delicate task of balancing growth-supportive spending with fiscal restraint....