Government may permit fiscal deficit to rise to 4.8% of GDP amid Iran war, report says

The report indicates the government is considering a larger fiscal gap. The proposed deficit would reach 4.8% of gross domestic product. This move is being weighed against the backdrop of the ongoing Iran war. Officials hope the flexibility will support war‑related expenditures. Expanding the deficit could affect fiscal discipline and borrowing needs. Analysts warn higher deficits may pressure the debt market. The proposal has not yet been formally approved by the cabinet. Stakeholders will watch for the final decision in upcoming budget discussions.