India's fiscal deficit projected at 4.5% of GDP for FY26
pre-market1 source ↓written by the desknot a recommendation
- in FY26
- 4.5% of GDP
- during April-February FY26
- ₹12.5 trillion
- 80.4% of revised estimates
- a year earlier
- ₹13.5 trillion
- in capital expenditure
- 15% increase
The fiscal deficit for India is projected to be 4.5% of GDP in FY26, with the deficit narrowing to ₹12.5 trillion during April-February FY26. This is 80.4% of revised estimates, down from ₹13.5 trillion a year earlier. The government's recent excise duty cuts on fuels may lead to a net revenue loss of ₹1-1.2 trillion in FY27, complicating budget forecasts amid rising crude prices due to geopolitical tensions.
• 15% increase in capital expenditure YoY
• Elevated 10-year government bond yields expected
Traders should monitor bond market reactions and fiscal policy adjustments closely.
Not investment advice. For informational purposes only.