Govt to borrow Rs 40,000 cr more this fiscal

The government today said it will raise Rs 40,000 crore more from market this fiscal, amid likely shortfall in revenue collection and dismal disinvestment activities.

Earlier in September also, due to shortfall in financing items like small saving funds, the government had decided to to increase its market borrowings through dated securities by Rs 52,872 crore during the second half of 2011-12 over and above Rs 4.17 lakh crore planned in the Budget.

"On a review of the Government's overall financing requirements ... the gross market borrowing through dated securities during 2011-12 will further increase by Rs 40,000 crore over the already announced increase of Rs 52,872 crore," the Finance Ministry said in a statement.

Accordingly, the revised indicative calendar for issuance of Government dated securities for January-March has been released by the Reserve Bank.

Government paper with tenor beyond one year is known as dated security. At present, there are Central Government dated securities with a tenor up to 30 years in the market.

The Finance Ministry further said that modifications in the borrowing calendar in terms of notified amount, issuance period, maturities could be made depending upon the cash requirments and market condition.

Amid the slowdown in the economic conditions, the government is unlikely to meet its Rs 9.32 lakh crore tax collection target this fiscal. Besides, it has managed to mop-up only Rs 1,145 crore from disinvestment against the target of Rs 40,000 crore this fiscal.

Meanwhile, RBI also announced the borrowing calender to raise Rs 1.52 lakh crore through auction of Treasury bills in the January-March quarter of the fiscal.

DH Newsletter Privacy Policy Get the top news in your inbox
Comments (+)