States’ consolidated fiscal deficit widens 0.3 pc to 3.3 per cent in FY25: RBI

January 23, 2026

Indias states fiscal deficit has widened to 3.3 percent of GDP in fiscal year 2025. This increase stems from states borrowing more under a central government scheme for capital investment. Capital expenditure remains a focus, budgeted at 3.2 percent of GDP in fiscal year 2026.

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