BS EDIT: Managing Fiscal Fallout

By Business StandardPublished On May 13, 2026

External Pressures Rise

Costlier crude oil is widening the current account deficit and weakening the rupee

Fiscal Target at Risk

The Centre’s 4.3% fiscal deficit target now looks increasingly difficult to maintain

Revenue Losses Mount

Fuel excise duty cuts could lower government revenues by nearly ₹1.5 trillion annually

Subsidy Burden Grows

Higher global prices may push fertiliser subsidy spending up by almost 20%

Pressure on Oil Firms

OMCs are facing steep monthly under-recoveries, making government support likely

Balancing Growth and Stability

The government may need spending adjustments while protecting capital expenditure