India government bonds take a beating over Budget fears

Mumbai

INDIAN sovereign bonds have turned into Asia's worst performers in 2016, from the best in the previous two years, amid concern Prime Minister Narendra Modi's budget will show fiscal discipline is slipping away.

The government may seek to borrow an unprecedented 6.8 trillion rupees (S$139.7 billion) in the financial year starting April 1, according to a Bloomberg survey of 10 fixed-income strategists and economists before the fiscal plan is announced Monday. That's 13 per cent higher than this year's six trillion rupee estimate. The deficit target may be raised to 3.7 per cent from 3.5 per cent.