The Centre’s fiscal deficit widened sharply year-on-year in the first two months of 2026-27, reflecting higher spending and weaker tax receipts. However, public-finance experts said the fiscal position is likely to improve over the rest of the year as crude oil prices ease and non-tax revenues remain robust. According to Controller General of Accounts (CGA) data, the fiscal deficit stood at Rs 1.6 lakh crore during April-May, accounting for 9.6% of the Budget Estimate (BE) for FY27, compared with 0.8% of the respective target in the year-ago period.