New Delhi, December 2, 2025 — The government is resorting to selective cuts in capital expenditure to offset shortfalls in tax collections while ensuring that key fiscal deficit targets remain firmly on track, according to a recent report. The strategy aims to maintain macroeconomic stability without sharply impacting essential welfare and priority development programmes.
The report highlights that while revenue growth has seen temporary pressure due to slower indirect tax inflows, authorities remain confident of meeting annual fiscal goals through disciplined spending and improved non-tax revenue mobilisation. Economists believe this balanced approach will help preserve investor confidence while keeping inflation and borrowing levels under control.
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