India is preparing for a wider-than-expected budget deficit this year, Bloomberg News reported on Friday, citing an official familiar with the matter, as the war in Iran drives up energy subsidy costs and adds pressure on government finances. Reuters could not immediately verify the report and has sought comment from India's finance ministry. Authorities are willing to let the deficit widen by as much as half a percentage point to 4.8% of gross domestic product compared with the 4.3% goal set in February, the report said.
India willing to let fiscal deficit widen to 4.8% of GDP: Report
India faces a larger budget deficit this year. The war in Iran is increasing energy subsidy costs. This puts pressure on government finances. Authorities may allow the deficit to widen by half a percentage point. The deficit could reach 4.8% of GDP. This is up from the 4.3% target set in February. The situation is being closely watched.
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