Budget 2018: Govt doesn't rule out fiscal consolidation pause in FY18

Modi expected to strike a balance between giving incentives to taxpayers before 2019 national polls and reassuring rating companies looking for an improvement in one of Asia's widest budget deficit

India cannot rule out a pause in its fiscal consolidation plan in the year through March, a key government adviser said, setting the government’s tone ahead of Thursday’s Union budget 2018.

"Setting overly ambitious targets for consolidation — especially in a pre-election year — based on optimistic forecasts that carry a high risk of not being realised will not garner credibility," Chief Economic Adviser Arvind Subramanian said in the Economic Survey presented in Parliament on Monday.

Sovereign bonds extended decline, with the yield on