In one of the first signs that India’s crackdown on tax evaders is helping swell the government’s coffers, it this week lowered its borrowing plan by 4.2%.The government says it now plans to reduce the amount it borrows by 180 billion rupees ($2.64 billion). It had budgeted to borrow a net 4.25 trillion rupees in the current financial year. The Reserve Bank of India, which acts as a fund manager for the government, said in a statement it reduced the borrowing plan “after reviewing the cash position.” Although the government hasn’t yet revealed how much money has been disclosed so far as part of the program that is open until March, analysts believe revenue from it could run into several billions of dollars, providing an unexpected bounty to the exchequer. Tax collection has been rising overall, which is helping the government cut back on its borrowing. Bond markets cheered the cut in borrowing.

(Wall Street Journal)