FX.co ★ India Fiscal Deficit Widens

India's fiscal deficit surged to INR 3.1 trillion in the first quarter of FY2027, up sharply from INR 280 billion in the same period a year earlier. This represented 28.7% of the full-year budget estimate—an allocation typically drawn down more heavily toward the end of the fiscal year—compared with 26.7% in the corresponding quarter of the previous year. As a net energy importer, the country is facing mounting fuel subsidy costs amid elevated oil prices driven by the ongoing conflict in the Middle East. Total expenditure rose 11.0% year-on-year to INR 13.5 trillion (25.4% of the budgeted amount), while total receipts increased 11.5% to INR 10.5 trillion (28.7% of the budgeted amount).