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flag India's fiscal deficit projected to exceed 4.5% of GDP due to West Asia conflict and rising oil prices.

flag India's projected fiscal deficit for 2026-27 is set to exceed the budgeted target, rising to 4.5% of GDP due to increased costs from the West Asia conflict. flag The closure of the Strait of Hormuz has driven oil prices above $95 per barrel, prompting the government to bolster subsidies and establish a Rs 1 lakh crore stabilization fund. flag Officials may also restrict exports of critical materials and delay energy-intensive infrastructure projects to manage the strain.

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