Plan to tap global mkts for govt borrowing added at last minute in Budget

The investors said that this was necessary for India to push for more foreign investors to pick up stakes in the bankruptcy-hit companies

One of the most significant decisions of Budget FY20, the plan to tap markets abroad for government borrowing, surfaced only in the last week of Budget preparations. Once operational, it would make the finance ministry the actual debt manager for the country at the expense of the Reserve Bank of India (RBI), a turf that has often been contested between the two. 

An informed source in the government said, “The proposal came formally from the RBI and not from the finance ministry.” But he did not elaborate on the reasons as to why the central bank had softened its reservations