Govt to borrow Rs 3.68 lakh cr in first half of 2014-15
Mar 28 2014 , New Delhi
The gross market borrowing through issue of dated securities in 2014-15 has been pegged at Rs 5.97 lakh crore, Rs 34,000 crore higher than 2013-14 fiscal ending March 31.
However, net the borrowing - which excludes redemptions of government securities - will be Rs 4.57 lakh crore, which is around 3 per cent lower than the current fiscal.
"This (market borrowing plan) is in line with fiscal correction by the government. We are confident that the borrowing programme will be conducted smoothly," Department of Economic Affairs Secretary Arvind Mayaram told reporters here.
"We have assessed demand from banks, which is robust. This year borrowing programme was conducted smoothly. Fiscal deficit target will be met," he said.
The government will continue with in inflation index bonds, Mayaram said, adding that they will be part of the borrowing programme for H1.
The net borrowing through T-bill for first quarter (April-June) may be kept Rs 40,000 crore, he added.
Last fiscal, the government had borrowed Rs 5.63 lakh crore from the markets, of which 61 per cent was borrowed in the April-September period.
The front-loading of borrowing is aimed at making available capital to the private sector in the last six months 2014-15.
The government hopes to garner Rs 36,925 crore from disinvestment, Rs 14,000 crore from residual stake sale in companies and healthy growth in tax collection to fund its expenditure in 2014-15.