NEW DELHI (Reuters) - The Indian government’s 2.11 trillion-rupee ($32.53 billion) plan to infuse capital into its banks, bulk of which will be funded via recapitalisation bonds, is unlikely to reflect in the fiscal deficit, a finance ministry official said on Thursday.
The government announced the recapitalisation plan earlier this week. As part of the plan 1.35 trillion rupees worth of bonds will be issued.
The government has a target to keep fiscal deficit at 3.2 percent of gross domestic product in the year to March 2018, and at 3 percent in the next financial year.
($1 = 64.8550 Indian rupees)
Reporting by Manoj Kumar