Budget 2018: Govt to borrow Rs 200 billion more in FY18, says Subhash Garg

All other factors being constant, this could take financial deficit to 3.4% of GDP

The government will reduce its additional borrowing to Rs 200 billion from the bond markets in the financial year 2017-18, from Rs 500 billion announced last month, Economic Affairs Secretary Subhash Garg said.

This is primarily because the Reserve Bank of India will pay a higher-than-anticipated surplus to the Centre, and the dividend target from state-owned companies will also be met, senior government sources confirmed separately to Business Standard.

While disinvestment target for the year is expected to overshoot the budgeted estimates by quite a margin, things seem to be looking up on the direct taxes front as well. There