State finances steady in Q1: Fiscal deficit at 1.8% of GSDP as 24 states post Rs 1.5 lakh crore gap; capex surges 28% on strong tax receipts

In the first quarter of FY26, the combined fiscal deficit of 24 Indian states reached Rs 1.5 trillion, 1.8% of their GSDP. A rebound in Own Tax Revenue drove a 6.5% year-on-year growth in revenue receipts. Capital expenditure surged by 28%, boosting overall expenditure. June 2025 saw a 16.8% rise in total receipts, with tax revenue climbing 14.