<h1>Government's Q1 Fiscal Deficit Hits 17.9% of Target; Capital Spending Up 52% Boosting Growth</h1> The government's fiscal deficit reached 17.9 percent of the full-year target by the end of June, with a shortfall of Rs 2,80,732 crore in the first quarter of the 2025-26 fiscal year. Total receipts amounted to Rs 9.41 lakh crore, including net tax revenue, non-tax revenue, and non-debt capital receipts. Transfers to state governments increased by Rs 47,439 crore compared to the previous year. Total expenditure was Rs 12.22 lakh crore, with significant portions allocated to revenue and capital accounts, including interest payments and subsidies. Despite subdued direct tax collections in June, capital expenditure grew 52 percent year-on-year, supporting investment demand and potentially benefiting GDP growth for the quarter.