Indian Bonds Complete Weekly Decline on Fiscal Deficit Concern
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India’s 10-year sovereign bonds completed a weekly decline on concern the government will struggle to meet its budget-deficit target and borrow more to bridge the shortfall.
A proposed increase in salaries of millions of civil servants and a plan to clear the debts piling up at power distribution companies threaten Finance Minister Arun Jaitley’s goal of fiscal consolidation. The government may have to reassess its fiscal projections for the year starting April 1, the Finance Ministry said in a review published Friday. The rupee was set for a second weekly gain.