India’s fiscal deficit widened sharply to INR 3.6 trillion in April 2026, the first month of the 2026-27 fiscal year, nearly doubling from INR 1.9 trillion a year earlier. As a net energy importer, the country faces rising fuel subsidy costs due to soaring oil prices tied to the ongoing Middle East conflict. For the 2025-26 fiscal year, the deficit reached INR 15.2 trillion, down from INR 15.8 trillion the prior year, equating to 97.5% of the government’s revised estimates. This figure was better than the INR 15.7 trillion target, or 4.4% of GDP.