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Traders Have Challenge Spotting India's Hidden, Growing Debt

  • Spread between debt of state firms and sovereign to stay wide
  • Actual fiscal deficit may be closer to 4.25% of GDP: StanChart
Views Of The RBI And BSE As Central Bank Chief's Exit Roils Indian Markets Already Jittery From Election
Photographer: Dhiraj Singh/Bloomberg
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Bond traders have one question as they head into India’s budget on Friday -- how big are the off-balance sheet borrowings?

There’s growing expectations that the government will do an accounting sleight of hand to keep its deficit in check: borrow via state-owned firms and issue special bonds. That’s a concern since total public sector borrowings have reached as much as 9% of gross domestic product by one estimate.