India weighs budget cuts as rising oil boosts subsidy costs
India's government is thinking about trimming its budget because oil prices are climbing, making subsidies more expensive.
Finance Minister Nirmala Sitharaman was involved in meetings on cutting funds for things like water resources and loans to states, but spending on defense and big infrastructure projects will likely stay safe.
India's fiscal deficit nearly doubled April
Higher oil prices, a weaker rupee, and inflation are putting real pressure on India's finances.
The fiscal deficit nearly doubled in April compared to last year, and fertilizer subsidies could cost almost twice what was planned.
Economists say if oil stays expensive, it might mess with the government's goal to shrink the deficit by 2027, and possible spending cuts could spark debates over rural programs or state funding later this year.