Mumbai, June 24 -- India's fertiliser subsidy bill could increase by up to Rs 70,000 crore in FY27 if crude oil prices average between USD 80-90 per barrel, posing a challenge to the government's fiscal consolidation efforts, according to a report by Bank of Baroda (BoB).

The report said elevated oil prices could put pressure on the fiscal deficit ratio and create hurdles in achieving the budgeted fiscal deficit target for FY27.

According to the report, the fertiliser subsidy bill can increase by 30-40 per cent, translating into an additional burden of around Rs 50,000-70,000 crore if crude oil prices remain elevated.

It stated "Challenges for meeting budgeted FD ratio if oil prices remain elevated, Fertiliser subsidy bill can increase...