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S&P Warns of Indian Fiscal Slippage Risk

29 August 20261 min read
ECONOMYS&P Warns ofIndian FiscalSlippage Risk29 August 2026safalsetu.com

Why in the news

S&P Global Ratings cautioned that India’s Centre may miss its deficit goal, yet it left its outlook on the country at stable.

Key facts

  • Agency: S&P Global Ratings; outlook: stable.
  • Centre’s FY27 fiscal deficit target: 4.3% of GDP.
  • S&P sees the Centre’s deficit falling to 3.9% by FY30.

Deficit projections

MeasureFY27FY30
Centre’s deficit4.3% (target)3.9% (S&P expectation)
General government deficit7.3% of GDP6.6% of GDP

Exam angle

  • Agency: S&P; outlook: stable.
  • Numbers: 4.3%, 3.9%, 7.3%, 6.6%.

Test yourself

1. What is the Centre's FY27 fiscal deficit target mentioned in the S&P note?

The FY27 target is 4.3% of GDP.

2. What outlook did S&P Global Ratings retain on India while flagging fiscal slippage risk?

S&P retained a stable outlook.

3. S&P projects India's general government fiscal deficit at what level in FY27?

The projection is 7.3% of GDP in FY27, easing to 6.6% by FY30.