States' fiscal deficit at 1.8% of GSDP in Q1FY26, capex momentum strong: Report

A report by ICICI Bank Global Markets reveals that the combined fiscal deficit of 24 Indian states reached Rs 1.5 trillion in the first quarter of 2025-26. Revenue receipts grew, driven by stronger Own Tax Revenue, while capital expenditure surged by 28 per cent. Transfers from the Centre also rose sharply, contributing to the overall financial landscape.