The Economic Times

Centre's FY27 fiscal deficit may exceed Budget target by Rs 1.2 lakh crore: SBI Research

India's central government anticipates a fiscal deficit exceeding budget estimates by Rs 1.2 lakh crore in 2026-27. This increase is primarily attributed to rising fertiliser, LPG, and petroleum subsidy expenses. Strong GST growth and disinvestment receipts may not offset the expected higher deficit. In addition, SBI Research recommends a revised long-term capital gains structure to generate additional revenue.