India sticks to FY18 borrowing target, leaves window ajar for extra bond sales

India`s government stuck to its budgeted market borrowing target on Thursday for the fiscal year ending in March 2018, but didn`t rule out the possibility of selling additional bonds to fund any new spending.

After a meeting with central bank officials, Economic Affairs Secretary Subhash Chandra Garg said that New Delhi would borrow Rs 2.08 lakh crore ($31.77 billion) between October and March.

In February, the government had budgeted gross market borrowings of Rs 5.8 lakh crore  ($88.57 billion) for the 2017/18 fiscal year. Of this, 3.72 trillion rupees was raised in the first half of the year.

Garg, however, said that funding any new spending would require extra market borrowing.

The government will stick to its budgeted market borrowing target for the fiscal year ending in March 2018, a senior finance ministry official told reporters on Thursday after a meeting with central bank officials.

The official declined to be named as he was not authorized to speak to media.

The government has budgeted gross market borrowings of 5.8 trillion rupees ($88.57 billion) for the 2017/18 fiscal year.