India’s Budget Gap Breaches Estimate on Poor Tax Collection (2)

India’s budget gap for the year ended March 31 has touched 4.4% of gross domestic product -- a six-year peak -- 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 rupees ($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 budget gap at 4.4% means the federal government might have to suspend a ...