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India Expands Fiscal Deficit Target to 4.8% of GDP, Up From 4.3% Set in February

2026-06-12 03:48:52

According to Jin10, citing an official on June 12, India has agreed to expand its fiscal deficit target for the current year to 4.8% of GDP, up from the 4.3% target set in February. The adjustment comes as energy subsidy costs have surged due to the Iran war, straining government finances. This marks the first time since the pandemic that India will miss its budget deficit target. The Finance Ministry assured rating agencies that any deterioration in public finances is due to uncertain global conditions rather than a shift in fiscal discipline.

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