India: Cheaper Oil supports FY27 deficit target – Standard Chartered
The post India: Cheaper Oil supports FY27 deficit target – Standard Chartered appeared on BitcoinEthereumNews.com. Standard Chartered economists Anubhuti Sahay and Saurav Anand assess India’s FY27 fiscal deficit outlook, highlighting how lower crude Oil prices reduce the risk of fiscal slippage to about 0.2-0.3% of Gross Domestic Product (GDP) versus 0.5% earlier. They cite the Economic Stabilisation Fund, reduced subsidy burden, partial excise duty rollback, and faster divestment as key supports, while noting remaining but manageable risks. Lower slippage risk with cheaper Oil “We think the risk of a slippage in the central government’s FY27 (year ending March 2027) fiscal deficit has eased to 0.2-0.3% of GDP, given the sharp fall in crude oil prices; we had previously estimated slippage risk at 0.5% of GDP (see At a Glance – India – Is the tide turning?). The central government has targeted the FY27 fiscal deficit at 4.3% of GDP.” “Likely lower losses from the excise duty cut, a lowe