Govt reduces borrowing target by Rs 10,000 crore in 2010-11

Govt reduces borrowing target by Rs 10,000 crore in 2010-11

"We are required to as per the programme given earlier to raise Rs 1.73 lakh crore (in the second half of FY'11). Looking at the projected cash flows and current requirement, we think it is not required to raise the whole amount. The amount reduced is at present by Rs 10,000 crore to Rs 1.63 lakh crore," Finance Secretary Ashok Chawla told reporters here.

The government had pegged its total market borrowings for this fiscal at Rs 4.57 lakh crore, out of which Rs 2.84 lakh crore was raised in the first half, ending September 30.

In the second half, the government was to borrow Rs 1.73 lakh crore to meet the target. But now this stands reduced by Rs 10,000 crore.

The reduced borrowing could be mainly due to over Rs one lakh crore of revenue the government mopped up from sale of 3G telecom and broadband licences.

Commenting on the government's borrowing programme, RBI Deputy Governor Shyamala Gopinath said today, "Borrowing would be over by the first week of February and it won't be front loaded. Weekly borrowing would be between Rs 10,000 crore and Rs 11,000 crore on an average."

Last fiscal, the government had borrowed Rs 4,50,000 crore.

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