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<h1>Fiscal deficit signals midyear strain as higher capital spending and transfers widen the gap with budgeted receipts.</h1> The Controller General of Accounts reports the central government's fiscal deficit at 36.5 per cent of the full year target at midyear, driven by higher capital spending, predominant revenue outlays (notably interest payments and subsidies), and increased transfers to states as tax devolution; an economist notes that end year expenditure savings and stronger non tax receipts may mitigate shortfalls in tax revenue and limit slippage from the fiscal target.