New Delhi, April 22 -- India's fiscal deficit could exceed the budgeted target in FY2026-27 due to policy responses to the ongoing crisis in West Asia, according to research firm BMI.

The government had projected a fiscal deficit of 4.3 per cent of GDP for FY2026-27, marginally lower than the revised estimate of 4.4 per cent for the previous year. However, BMI said on Wednesday that it expects the deficit to rise to around 4.5 per cent, citing increased spending pressures, PTI reported.

Policy Measures to Cushion Economic Impact

BMI anticipates that the government may introduce targeted measures to support key industries, including redirecting critical inputs, controlling business costs and enhancing financial assistance to firms.

It ...