SBI Research says Centre's FY27 deficit may top target by Rs 1.2 lakh crore
In short
SBI Research said India’s central government may miss its FY27 fiscal deficit target by Rs 1.2 lakh crore in 2026-27. It linked the risk to higher fertiliser, LPG and petroleum subsidy costs.
The report says GST growth and disinvestment receipts may not be enough to fill the gap. The final deficit number is still not known.
What the reporting says
SBI Research said India's central government may see its FY27 fiscal deficit exceed the Budget estimate by Rs 1.2 lakh crore in 2026-27. The report points to higher fertiliser, LPG and petroleum subsidy spending as the main pressure, while strong GST growth and disinvestment receipts may still not fully cover the gap. The exact final deficit outcome remains unknown.
Why it matters
SBI Research said the Centre’s FY27 fiscal deficit could rise above the Budget target by Rs 1.2 lakh crore, based on higher expected spending on fertiliser, LPG and petroleum subsidies in 2026-27. The report also said strong GST collections and disinvestment receipts may not fully offset the pressure. It additionally suggested a revised long-term capital gains structure to raise more revenue, but no policy decision has been announced.