The first two months of FY27 have been marked by higher subsidy payouts and elevated interest expenditure. Faster spending on railway capex remains the key bright spot, while most other spending trends are broadly in line with expectations. The customary additional tax devolution to states in June may not have materialised this year due to weak tax collections and the front-loading of capex loans, although it could occur in Q2. Non-tax revenues, disinvestment proceeds and asset monetisation receipts are also tracking below expectations.