Page 2 - Fiscal Deficit

Govt slashes expenditure by ₹60K cr to meet fiscal deficit target in FY26

In FY26, while revenue expenditure was cut by Rs 26,636 crore, capital expenditure was reduced by Rs 33,055 crore, leading to a dip in total expenditure by Rs 59,691 crore to Rs 49 trillion

India's FY26 fiscal deficit at 4.4% of GDP, in line with govt estimates

The ‌deficit was at ​₹15.19 trillion ($159.91 billion), or 97.5% of the government's ​revised estimates presented in February

Best of BS Opinion: RBI's surplus transfer will not ease fiscal pressure

Hello and welcome to BS Opinion, a wrap of editorials and columns on today's Opinion page.

Record RBI dividend likely to provide limited fiscal support: Economists

Economists warn of fiscal slippage risks in FY27 despite RBI's record surplus transfer, citing higher subsidy burden and lower revenue growth

RBI set for record dividend transfer to govt, fiscal gap likely to persist

An expected ₹3.05 trillion handover, the midpoint of the poll, would be ‌the highest share of expected government revenue in more than two decades, excluding the fiscal year 2019-2020

IMF backs targeted relief over broad subsidies amid oil price surge

The multilateral institution has urged governments to avoid broad-based subsidies and instead adopt targeted fiscal measures to manage inflation and protect vulnerable households

Best of BS Opinion: Centre, states face strong fiscal headwinds

From Bharti Airtel's succession planning and AI-driven cyber risks to the economic fallout of the West Asia conflict and India's investment needs - here are today's top opinion pieces

Not just an external threat: India faces strong fiscal headwinds within

More attention needs to be paid to fiscal implications of the West Asian conflict for the Union and state governments

Managing fiscal fallout: Govt must make the necessary adjustments

Higher fuel prices and limited gas availability are affecting economic activities, which could result in lower overall tax collection and add further pressure on the Budget

Assam Assembly election results 2026: BJP navigates the fiscal tightrope

The party, which is set to return to power in the state, has also pledged to set up one university in each district and appoint more teachers to strengthen the education sector

Finances stable, but freebies might hamper Tamil Nadu's fiscal maths

A similar trend is visible in the revenue deficit, as the revised estimates suggest a revenue deficit of 1.94 per cent of GSDP in FY26, up from 1.47 per cent in FY25

BJP's promises face funding hurdles after ending TMC's 15-yr rule in Bengal

The BJP's commitments are expansive, ranging from ₹3,000 monthly transfers for women and unemployed youth to implementing the 7th Pay Commission and raising dearness allowance

Promise and delivery: Record turnout at polls reflected demand for change

The most humbling lessons of anti-incumbency, however, came from West Bengal, where the BJP finally fulfilled its ambition of ousting Mamata Banerjee's TMC after the latter's 15 years in power

Tight fiscal space leaves limited room for poll promises in West Bengal

West Bengal's fiscal deficit and debt remain elevated, while economic and social outcomes present a mixed picture

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