India is preparing for a wider-than-expected budget deficit this year, according to an official familiar with the matter, putting it on course to miss its target for the first time since the pandemic as the war in Iran drives up energy subsidy costs and adds pressure on government finances.
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 official said, asking not to be identified as the discussions are private. The Ministry of Finance has reassured credit rating ...