Finmin, RBI to discuss govt's borrowing plan

Officials from the finance ministry and RBI will meet on Thursday to discuss the government’s borrowing plan for the second half of the fiscal year, several sources said, as talk swirls that New Delhi will miss its deficit target.

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The meeting was scheduled to begin at around 3 pm local time, they said. Earlier, a source had said the meeting had been deferred to Friday.

The government is scheduled to borrow Rs 2 lakh crore during October-March as part of Rs 5.7 lakh crore to be raised for the whole year ending in March 2013.

Analysts do not expect India to announce any increased borrowing on Thursday, but a Reuters poll shows the country is expected to eventually have to raise an additional Rs 50,000 crore for fiscal 2012/13.

Reuters