FX.co ★ India’s Fiscal Deficit Doubles in April 2026 Amid Oil Price Surge

India’s fiscal deficit surged to INR 3.6 trillion in April 2026, the opening month of the 2026–27 fiscal year, nearly twice the INR 1.9 trillion recorded a year earlier. As a net energy importer, the country is facing escalating fuel subsidy costs, driven by soaring oil prices linked to the ongoing conflict in the Middle East. For the 2025–26 fiscal year as a whole, the deficit stood at INR 15.2 trillion, down from INR 15.8 trillion in the previous year, representing 97.5% of the government’s revised estimate. This outcome was better than the initial target of INR 15.7 trillion, equivalent to 4.4% of GDP.