Modi's aim to contain fiscal deficit: Two options exist, both are painful

The government has opted for borrowing Rs 500 billion in excess of the Rs 5.80 trillion Budget Estimate

Prime Minister Narendra Modi wanted minimum slippage from the fiscal deficit target of 3.2 per cent of gross domestic product (GDP) for 2017-18, sources said.  

“The Prime Minister and his office are keen that everything is done to ensure that the fiscal deficit target is as close to the target as possible. There are only two options that policymakers in North Block can exercise. Either spending is cut drastically or deferred until next year, or the public sector undertakings (PSUs) are told to spend more. Either option is painful,” an official said.

The Centre in November ran up a