<p>The government has proposed to borrow Rs 4 lakh crore during the current fiscal.<br /><br />Rangarajan, who was delivering a lecture on “International financial crisis and its impact on India’ to Members of Parliament here yesterday, also said that interest rates would go up by the end of the year.<br /><br />Hardening interest rates<br />“Interest rates will harden by the end of the year,” he said.<br /><br />Rangarajan, now a member of the Rajya Sabha, said “as long as the private demand is not picking up, the government will be able to borrow at the same rate.”<br /><br />He said the economy was likely to show signs of definite improvement in the second half of current fiscal which might lead to a pick-up in demand for credit by the industry.</p>
<p>The government has proposed to borrow Rs 4 lakh crore during the current fiscal.<br /><br />Rangarajan, who was delivering a lecture on “International financial crisis and its impact on India’ to Members of Parliament here yesterday, also said that interest rates would go up by the end of the year.<br /><br />Hardening interest rates<br />“Interest rates will harden by the end of the year,” he said.<br /><br />Rangarajan, now a member of the Rajya Sabha, said “as long as the private demand is not picking up, the government will be able to borrow at the same rate.”<br /><br />He said the economy was likely to show signs of definite improvement in the second half of current fiscal which might lead to a pick-up in demand for credit by the industry.</p>