New Delhi, March 12 -- If crude oil prices sustain above USD 100 per barrel in FY27, the Central government's annual additional expenditure could rise by Rs 3.6 lakh crore, according to a report by Elara Securities.

The report highlighted that the ongoing Middle East conflict shows few signs of de-escalation, which could intensify Asia's energy crisis and trigger global supply chain disruptions.

It stated "scenario where Brent crude sustains at USD 100/ bbl through FY27E, India's current account deficit (CAD) could widen to 2 per cent of GDP (from 1 per cent at US D 70/bbl), USD -INR could weaken further to 94 - 95, while the Centre's annual additional expenditure would rise by INR 3.6tn/annually".

It noted that prolonged interruptions...