New Delhi, July 31 -- India's fiscal deficit nearly doubled in the first quarter of FY26, compared with the same period of the previous year, driven by a sharp rise in capital expenditure, signalling the government's continued push to support economic growth through public investment.

Data released on Thursday by the Controller General of Accounts showed the fiscal deficit for April-June (Q1, FY26) at Rs.2.81 trillion, or 17.9% of the full-year target.

The fiscal deficit stood at Rs.1.36 trillion in the same period last year.

The surge comes amid a ramp-up in central government capex, which rose to Rs.2.75 trillion in Q1, 24.5% of the annual goal, compared to Rs.1.81 trillion a year earlier.

While the fiscal gap widened, the year-on-y...