India Weighs Budget Cuts to Defend Deficit Target as Rising Oil Prices Lift Subsidy Bills

3 articles · Updated · Bloomberg · Jun 4

India is reviewing spending cuts across parts of the budget after higher oil prices raised subsidy costs and put its fiscal-deficit goal at risk.
Finance Minister Nirmala Sitharaman has discussed the options in meetings over the past month, though officials said no decision has yet been taken.
The deliberations show how a sustained rise in crude prices could complicate New Delhi’s fiscal-consolidation plans by forcing trade-offs between subsidies and other spending.

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As oil prices soar, will India sacrifice social welfare programs to maintain its fiscal targets?

With India's growth tied to public investment, how will spending cuts affect its ambitious infrastructure and semiconductor goals?

Is this fiscal crisis the final push India needs to break its deep-rooted dependency on foreign oil?