Goldman Sachs Expects India To Achieve FY27 Fiscal Deficit Target Of 4.3% Of GDP Despite H1 Deficit Reaching 42.6% Of Annual Estimate
New Delhi: The Centre is likely to meet its fiscal deficit target of 4.3 per cent of GDP for FY27 despite the deficit reaching 42.6 per cent of the full-year estimate in the first six months, as stronger corporate tax collections are helping offset revenue pressures, according to a report by Goldman Sachs Research. The firm said the government would most likely achieve the target by…
Goldman Sachs Research anticipates India's government will meet its fiscal deficit target of 4.3% of GDP for fiscal year 2027 (FY27), despite a 42.6% deficit in the first half of 2023. Strong corporate tax collections are offsetting revenue pressures and helping achieve the target, according to the report. The government might reprioritize spending and manage capital expenditure to stay on track.
Risks include potential rises in fertiliser subsidies and further fuel excise duty relief if global commodity prices remain high.
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- India likely to meet FY27 fiscal deficit target despite spending pressures: Goldman Sachs economictimes.indiatimes.com
