Fiscal Deficit Seen Near 4.3% Despite West Asia Shock

The government is trying to keep its spending gap close to the number promised in the Budget.

A crisis in West Asia created worries that the gap would become much larger.

One major worry was that fertiliser subsidies would become very expensive.

However, fertiliser prices have fallen, so the extra cost may be much smaller than first expected.

The government also has a special fund that can help pay for unexpected costs.

Cutting taxes on petrol and diesel will reduce government income.

Selling some assets and controlling spending may make up for part of that lost income.

The government says it can protect investment spending while keeping the deficit near its target.