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India needs to manage expenditure growth in H2 FY26

25 Nov 2025 · 16:10 ISTafter close1 source ↓written by the desknot a recommendation

growth was just: 4.5% YoY
significantly below: 12.6% target

India may need to slow down spending growth in H2 FY26 to meet its fiscal deficit target, according to a report by Morgan Stanley. Tax revenue growth was just 4.5% YoY, significantly below the 12.6% target. This slowdown is attributed to low GDP deflator values and higher tax refunds, impacting overall revenue collections.

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Sourcesnews.google.com

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Economy

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India needs to manage expenditure growth in H2 FY26

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