India fiscal deficit jumps to Rs 1.62 trillion; govt holds small‑savings rates steady

India's central government reported a widening fiscal deficit of Rs 1.62 trillion for April–May FY27, equivalent to 9.6 % of the full‑year budget estimate. The increase was driven by higher subsidy outlays—especially for fertilizer and food—combined with rising interest payments, while revenue growth lagged, with gross tax receipts up only 1.8 % year‑on‑year.

In a separate fiscal move, the Ministry of Finance kept interest rates on all small‑savings schemes unchanged for the July‑September quarter of FY2026‑27. Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana remain at 8.2 % annual, National Savings Certificate at 7.7 %, Public Provident Fund at 7.1 %, and other schemes such as the Post Office Monthly Income Scheme and Kisan Vikas Patra retained their existing rates. The decision maintains stable returns for millions of risk‑averse investors.

Both developments underscore the government's effort to balance fiscal pressures with the need to provide predictable, low‑risk investment options for the public.