The Indian central government recorded a budget deficit of INR 5.73 trillion in the first half of the 2026 fiscal year, widening from INR 4.75 trillion in the corresponding period of the previous year, despite bringing the deficit down from the INR 5.98 trillion from the first five months. The funding gap corresponded to 37% of annual estimates in the latest budget, improving from the 40% in the previous month, as businesses adapted to the first period of aggressive tariffs by the United States. Total government expenditure was 9.1% higher from the previous year at INR 23 trillion, while total receipts rose by 5.7% to INR 17.3 trillion.