With bond yields falling to multi-year lows,a section of the bond market says it could be time the government enables in t he Budget state-owned infrastructure and in rafinance companies to raise enormous amounts of tax-free bonds. The government doesn’t raise tax-free bonds directly.It instead allows state-owned institutions to raise these bonds.The bonds raised by these companies are over and above the government’s borrowings.The government is committed to borrowing with in a particular limit.For 2016-17, the borrowing was limited to 3.5 percent oft h e gross domestic product,which was later reduced byRs.18,000crore in the firstweek of January this year. “The government for goes only asmall amount on taxes on tax-free bonds,but it largely helps the infrastructure sector. Given the government has good taxbuoyancy,whatwith direct and indirect taxes expected to be good after demonetisation,itmay allowafairamountof tax-freebondsthistime around,”saidJoydeep Sen,anindependent financiala