Govt to borrow Rs 3.68 lakh cr in first half of 2014-15

Tags: News
The government today said it will borrow Rs 3.68 lakh crore in the first half of next fiscal, accounting for 61.5 per cent of the total budget target for 2014-15, which will leave more scope for private sector to tap the market in the second half.

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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • This is right time for retail investors to enter the debt market

    Quite often, retail investors are ridiculed for entering the equities market in droves, signalling the first signs of a bubble on the Street.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Zehra Naqvi

What imperfections in nature teach man

Each one of us has faced a time when we ...

Dharmendra Khandal

A wondrous world under the ground

Burrows and dens are safe homes for many kinds of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture