Indian government is in a position where it can easily fund fiscal deficit, a note by Goldman Sachs announced. It further added that the net borrowings for India, during the coming fiscal year, will be lesser than the past.

Writing about the fiscal position of India, Tushar Poddar and Pranjul Bhandari, both analysts, said that the Indian government is in a comfortable position due to aggressive disinvestment and above-the-line fiscal deficit. This has allowed it to fund its fiscal deficit more than it could do till now.

As per Goldman Sachs, the federal deficit in India, during 2010-11, will come down to 5.3 per cent. This is one per cent lower than the current fiscal's figures. The 2009-10 deficit as part of the GDP is expected to be approximately
6.3 per cent.

The deficit will be down since the government will now pull back its stimulus package in the coming months. But, it would still be high, says a Reuters' survey, because it would need to borrow heavily from the markets to finance its projects.

This is surely good news before the unveiling of Budget, which will take place on Friday.