Record Debt Sales Push Indian Bonds to Worst Day Since May
- Government proposes cash handouts to small farmers in budget
- Budget deficit seen at 3.4% of GDP this fiscal vs 3.3% target
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Sovereign Indian bonds yields surged the most in eight months and rupee weakened after Prime Minister Narendra Modi’s government announced record borrowings to fund populist policies before elections by May.
The administration plans to borrow 7.1 trillion rupees ($100 billion) in the year starting April 1, Finance Minister Piyush Goyal said in his interim budget speech on Friday. That compares with a 6.4-trillion rupee forecast in a Bloomberg News survey and a revised 5.71 trillion rupees for the current fiscal period.