India’s budget gap for the year ended March 31 has touched 4.4% of gross domestic product, breaching the target set in February as an economic slowdown reduced tax collections, people with knowledge of the matter said.
A revenue shortfall of ₹1.7 trillion ($22 billion) led to the higher deficit number, the people said, asking not to be identified as the figures are not public.
Finance Minister Nirmala Sitharaman had targeted a 3.8% gap. A finance ministry spokesman declined to comment. The widest budget gap in six years means Prime Minister Narendra Modi’s government might have to suspend a law meant to cap its fiscal deficit, according to Anubhuti Sahay, head of South Asia research at Standard Chartered Bank Plc.