The Centre’s fiscal deficit was contained at 26.8% of the annual target in the first four months of FY27, aided by strong revenue growth even as capex surged. The Centre’s fiscal deficit was at 29.9% of the relevant annual target in April-July of FY26. The Centre’s net tax collections rose by a healthier 27.6% in April-July of FY27, amidst a contraction in tax devolution to the states, as four tranches of devolution have been shared with the states in April-July compared with five in April-July in the previous year.