Govt to borrow Rs 1.56 lakh cr in Jul-Sept quarter
The government will borrow Rs 1.56 lakh crore in the July-September quarter to meet its financing requirements, which is in line with the schedule spelled out by the Finance Ministry at the beginning of the year.
New Delhi: The government will borrow Rs 1.56 lakh crore in the July-September quarter to meet its financing requirements, which is in line with the schedule spelled out by the Finance Ministry at the beginning of the year.
As per the borrowing calendar issued by the Finance Ministry in consultation with the Reserve Bank, the government will auction Treasury Bills worth Rs 1.56 lakh crore in the September quarter.
The gross market borrowing through issue of dated securities in 2013-14 has been pegged at Rs 5.79 lakh crore. Of this, 58 percent would be completed in the first half.
The front-loading of borrowing is aimed at making available capital to the private sector in the last six months of 2013-14, experts said.
The government has to borrow funds from the market to finance the fiscal deficit, which is estimated to be 4.8 percent in current fiscal. In 2012-13, the fiscal deficit was 4.9 percent.
The government is hoping to garner Rs 40,000 crore from disinvestment, Rs 15,000 crore from residual stake sale in companies and healthy growth in tax collection to fund its expenditure in 2013-14.
Finance Minister P Chidambaram has already indicated that he will stick to the fiscal deficit target of 4.8 percent of GDP for this year.
However, according to experts rupee depreciation would put pressure on the fiscal deficit as the oil and fertiliser subsidy bills are likely to shoot up.
The net borrowing for 2013-14 fiscal year will be at Rs 4.84 lakh crore. During 2012-13, the government borrowed a net Rs 4.67 lakh crore from the market.