Modi, who has completed one year in power this week, managed to hit a budget deficit goal of 3.9 percent of GDP in the fiscal year to March with a severe capex squeeze in the final three months of the year.

That helped offset the impact of weak tax revenue but, as Modi looks to prime Asia's third-largest economy for recovery, his government will need to ramp up spending on roads, railways and ports.

With banks weighed down by bad loans, company profits squeezed, rural demand weak and exports depressed, the government recognises it will have to take the lead to meet its jobs and growth goals.

Fiscal deficit figures for the first month of the new fiscal year, due just before quarterly GDP figures, will give a first indication of whether Modi is committing government cash to back his election pledge of "better days" for India.

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