Govt Deficit May Overshoot Budget by Rs 1.2 Lakh Crore
SBI Research says the central government's fiscal deficit for 2026-27 could be Rs 1.2 lakh crore higher than the Budget estimate. The main reasons are higher spending on fertiliser, LPG and petroleum subsidies. The report notes that strong GST collections and disinvestment money may not fully cover the extra cost.
Context
Context: The fiscal deficit is the gap between what the government spends and what it earns, and it shows how much it must borrow. Subsidies cut prices for fuel and fertiliser for farmers and households, so when costs rise, the state pays more to keep them steady.
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