India Fiscal Deficit Widens

2026-07-31 11:04 By Andre Joaquim 1 min. read

India's fiscal deficit surged to INR 3.1 trillion in the first quarter of FY2027 from INR 280 billion in the corresponding period of the previous year.

This was equivalent to 28.7% of the current budget estimate, which is commonly depleted toward the end of the fiscal year, compared to 26.7% in the previous year.

As a net energy importer, the country is grappling with rising fuel subsidy costs due to elevated oil prices linked to the ongoing Middle East conflict.

Total expenditure surged 11.0% year-on-year to INR 13.5 trillion (25.4% of budgeted amount), while total receipts rose by 11.5 to INR 10-5 trillion (28.7% of the budgeted amount).



News Stream
India Fiscal Deficit Widens
India's fiscal deficit surged to INR 3.1 trillion in the first quarter of FY2027 from INR 280 billion in the corresponding period of the previous year. This was equivalent to 28.7% of the current budget estimate, which is commonly depleted toward the end of the fiscal year, compared to 26.7% in the previous year. As a net energy importer, the country is grappling with rising fuel subsidy costs due to elevated oil prices linked to the ongoing Middle East conflict. Total expenditure surged 11.0% year-on-year to INR 13.5 trillion (25.4% of budgeted amount), while total receipts rose by 11.5 to INR 10-5 trillion (28.7% of the budgeted amount).
2026-07-31
India’s Fiscal Deficit Widens in April-May
India’s fiscal deficit widened sharply to INR 1.6 trillion in April-May 2026-27, up from INR 0.1 trillion a year earlier, reaching 9.6% of the full-year target compared to 0.8% in the same period last year. As a net energy importer, the country is grappling with rising fuel subsidy costs due to elevated oil prices linked to the ongoing Middle East conflict. Total expenditure surged 18.1% year-on-year to INR 8.8 trillion (16.5% of the target), while capital spending, primarily on infrastructure, rising to INR 2.5 trillion (20.5% of the annual plan, up from INR 2.2 trillion). Meanwhile, total receipts declined by 2% to INR 7.2 trillion (19.7% of the annual goal), including net tax revenues of INR 3.5 trillion, unchanged from a year ago. India has set its fiscal deficit target for 2026-27 at 4.3% of GDP, or INR 17.0 trillion.
2026-06-30
India’s Fiscal Deficit Doubles in April Amid Oil Price Surge
India’s fiscal deficit widened sharply to INR 3.6 trillion in April 2026, the first month of the 2026-27 fiscal year, nearly doubling from INR 1.9 trillion a year earlier. As a net energy importer, the country faces rising fuel subsidy costs due to soaring oil prices tied to the ongoing Middle East conflict. For the 2025-26 fiscal year, the deficit reached INR 15.2 trillion, down from INR 15.8 trillion the prior year, equating to 97.5% of the government’s revised estimates. This figure was better than the INR 15.7 trillion target, or 4.4% of GDP.
2026-06-01