Bond Rout in India Set to Deepen as Modi Widens Deficit Targets
- India’s benchmark 10-year yield climbs 18 basis points
- FY19 fiscal shortfall seen at 3.3% versus previous goal of 3%
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The Indian government’s budget plan to increase spending and widen its fiscal-deficit targets threatens to deepen the nation’s longest debt rout in almost two decades.
The administration will aim for a budget shortfall of 3.3 percent in the fiscal year starting April 1, Finance Minister Arun Jaitley told lawmakers in New Delhi Thursday, wider than its previous goal of 3 percent. The deficit is estimated at 3.5 percent for the current period ending March 31, compared with 3.2 percent seen earlier. Bond yields rose and the rupee fell following the announcement.