India’s fiscal deficit could exceed the FY27 Budget target by around ₹1.2 lakh crore and reach 4.7% of GDP, compared with the government’s target of 4.3%, according to SBI Research. The report cited higher fertiliser and petroleum subsidies, along with additional expenditure pressures, as key reasons for the projected increase. It also highlighted the need for spending adjustments to manage the fiscal gap while maintaining the government’s consolidation plans.
