Modi's Record Debt Sales Before Polls to Pressure Indian Bonds
- Government seen raising record 6.4 trillion rupees in FY20
- Budget deficit seen widening to 3.5% in FY19 Vs 3.3% target
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After posting the best quarter in four years, Indian bonds are pitted against a familiar foe: likely record debt sales by the government to finance populist measures before national elections due by May.
Prime Minister Narendra Modi’s administration may announce Friday plans to borrow 6.4 trillion rupees ($90 billion) for the next fiscal year in its budget, according to the median estimate of 15 strategists in a Bloomberg News survey. That compares with a revised 5.35 trillion rupees for the current year.