Lockdowns Worsen India’s Fiscal Woes Fueled by Weak Auctions
- Government is lagging its borrowing plan by 188 billion rupees
- Curbs on biggest states may disrupt supply and boost prices
This article is for subscribers only.
The unfolding Covid crisis in India is raising expectations that Prime Minister Narendra Modi’s government will need to raise more funds for stimulus even as the outbreak worsens its finances.
States and cities through the country, including the New Delhi capital and its financial hub Mumbai, have implemented lockdowns or curfews, which are seen impacting public revenue. That comes as the authorities are lagging their existing financing target by 188 billion rupees ($2.5 billion) just one month into the new fiscal year, according to Bloomberg’s calculations based on official data.