Fiscal Deficit

India likely to breach budgeted fiscal deficit target for FY27: BMI

India's fiscal deficit is likely to breach the budgeted target for current fiscal and hit 4.5 per cent of GDP as the government's policy response to the West Asia conflict could strain public finances, research firm BMI said on Wednesday. The government in 2026-27 Budget had projected a 4.3 per cent fiscal deficit, a tad lower than 4.4 per cent as per revised estimates for 2025-26. BMI also expects the government to introduce policies to redirect critical inputs to key industries, restrain business costs and improve financial support for firms. BMI said it also expects the government to consider restrictions on exports of scarce inputs such as helium and sulphur -- used for producing semiconductor chips. It said that since sulphur is also an important ingredient for making fertilisers, the government will strive to minimise disruptions to the agriculture sector, which employs 43 per cent of India's workforce. The government will seek to restrain cost increases for businesses affec

Best of BS Opinion: West Asia risks, RBI stance, AI, GDP debate

From West Asia tensions and RBI policy signals to AI in drug trials, fiscal risks, GDP debates and India-China strategy, today's BS Opinion offers a wide-ranging view of key economic and geopolitical

The West Asia Challenge: Govt must revisit its macroeconomic assumptions

West Asia tensions threaten India's fiscal balance, growth outlook, and external stability, forcing a rethink of macroeconomic assumptions

Fiscal demands: Rising global public debt poses risk to growth outlook

As the IMF data shows, governments refinancing debt at higher interest rates have seen interest payments rise sharply over the past few years, from 2 per cent to about 3 per cent of global GDP

Crude oil prices at $130 could unsettle growth outlook: S&P Global

S&P Global says crude at $130 per barrel could slow India's growth, widen fiscal deficit, raise inflation and strain corporate and banking sector performance

Beyond the optics of stability, India's economy faces rising external risks

Rising oil prices and limited fiscal space heighten risks of inflation, slower growth, and macroeconomic instability as the West Asia crisis unfolds

West Asia tensions likely to heighten fiscal risks, says Govinda Rao

Economist M Govinda Rao warns rising geopolitical tensions could expose India's fiscal vulnerabilities, calling for reforms in GST, deficits, and public spending

CAG pulls up Odisha govt for PSU dues, flags poor budget utilisation

Audit flags over Rs 5,000 crore unpaid PSU dividends and weak budget utilisation, raising concerns over fiscal oversight and revenue mobilisation in Odisha

Centre's fiscal deficit in April-February at 80% of FY26 target: CGA

Fiscal deficit narrows to 80.4% of revised estimates in April-February FY26, aided by higher revenues and steady capex, though global risks may pressure FY27 outlook

Centre's fiscal deficit touches 80.4% of full-year target at Feb-end: CGA

The Centre's fiscal deficit stood at Rs 12.52 lakh crore at the end of February, or 80.4 per cent of the annual budget target for 2025-26 compared to 85.8 per cent in the year-ago period, according to government data released on Monday. The central government estimates the fiscal deficit (the gap between expenditure and revenue) during 2025-26 at 4.4 per cent of GDP, or Rs 15.58 lakh crore. According to monthly accounts released by the Controller General of Accounts (CGA), the Centre's total receipts stood at Rs 27.91 lakh crore, or 82 per cent of the budget target by February-end 2026. The receipts included Rs 21.45 lakh crore tax revenue (net) and Rs 5.8 lakh crore non-tax revenue. The CGA data showed that the central government's total expenditure during April-February 2025-26 stood at Rs 40.44 lakh crore, or 81.5 per cent of the full financial year budget target.

StatsGuru: States' fiscal challenges versus electoral compulsions

The promises, if implemented, will aggravate public finances to varying degrees in these states, depending on the parameters chosen

Excise duty cut can result in fiscal loss of ₹1.5 trillion, say economists

₹10 per litre excise duty cut on petrol and diesel may cost ₹1.5 trn in FY27 but help sustain consumption amid the West Asia crisis, even as economists flag risks to fiscal space

High energy prices may impact FY27 fiscal position; buffers available: ICRA

Elevated global crude and gas prices may affect India's FY27 fiscal position, though buffers such as expenditure savings and fiscal tools could help manage pressures, ICRA said

West Asia war: Are the effects priced in amid rising economic risks?

As the Strait of Hormuz disruption deepens, India faces rising inflation, supply shocks, and fiscal strain, with markets yet to fully price in the risks

L&T hopes govt will sustain capex, widen deficit amid West Asia crisis

Amid concerns over a surge in import bill because of commodity price hardening in the wake of the Middle East conflict, Larsen & Toubro is hoping that the government continues with its capital expenditure even if it means a widening of fiscal deficit. The engineering, procurement and construction major feels the government should borrow more if needed to continue with capital expenditure, a senior official has said. "The import bill will go up because of oil and gas prices. The government will have to balance it. They will maybe temporarily raise the deficit, may be they will borrow more," its Deputy Managing Director Subramanian Sarma told reporters over the weekend. "Overall, if you look at it, our fiscal situation is pretty good... we have some headroom so that we don't compromise on the capital for the infrastructure," Sarma added. He also noted India has been able to curtail the fiscal deficit after the impact of the Covid pandemic. Spends on infrastructure are necessary to .

₹1 trillion stabilisation fund to give fiscal headroom: FM Sitharaman

Finance Minister Nirmala Sitharaman told Lok Sabha the Rs 1 trillion Economic Stabilisation Fund will help India respond to global shocks while keeping fiscal consolidation targets intact

Niti Aayog urges states to follow fiscal deficit norms under FRBM Act

Government think tank Niti Aayog on Wednesday urged state governments to adhere to fiscal deficit norms under the FRBM Act through disciplined expenditure management, broadening the GST base, and enhancing their own tax capacity. The Fiscal Responsibility and Budget Management (FRBM) Act aims to regulate the country's debt level by restricting fiscal and revenue deficits as a percentage of GDP. Niti Aayog's 2026 Fiscal Health Index (FHI) for 2023-24 suggests that states with widening revenue deficits should prioritise aligning revenue expenditure with sustainable revenue growth. Odisha, Goa, Jharkhand, Gujarat, Maharashtra Chhattisgarh, Telangana, Uttar Pradesh, Karnataka and Madhya Pradesh have emerged as India's top 10 fiscally-wise states, according to the latest fiscal health index for the financial year 2023-24. Bihar, Karnataka and Telangana showed a mild recovery, whereas Punjab, West Bengal and Kerala remained at the bottom of the index. In the FHI of 2025, which ranked st

Iran war: Fiscal pressures on govt may mount next FY, say experts

A prolonged West Asia conflict could strain India's fiscal position through higher fertiliser subsidies, rising import costs and weaker revenue growth

A Finance Commission that questions states but spares the Union government

The Commission appreciates the Union government's fiscal restraint during the pandemic and the subsequent reduction in deficits and debt following the sharp spike seen in the pandemic year

Govt seeks LS nod for additional expenditure of ₹2.81 trillion in FY26

Finance Ministry seeks Parliament approval for Rs 2.01 trillion net additional FY26 spending through the second supplementary demand for grants, with allocations for subsidies and reserve funds