India to borrow Rs 2.2 lakh crore in Oct-March

India will borrow Rs 2.2 lakh crore ($44.9 billion) in the second half of the fiscal year that begins on 1 October, higher than the budgeted Rs 1,67000 crore, R. Gopalan, economic affairs secretary said on Thursday.

This comes amidst worries of economic slowdown and a depleating treasury that the nation now faces. R.Gopalan, the DEA secretary, however pin-pointed the decline in small savings to be the reason behind the increase in gross borrowing.

The government had in the February budget pencilled in gross market borrowing of Rs 4.17 lakh crore for the 2011-12 fiscal year, to help bridge its fiscal deficit that is forecast to be at 4.6 percent of the GDP.

It has already completed borrowing Rs 2.5 lakh crore between April and September. The full-year borrowing would now stand at Rs 4.7 lakh crore .

Reuters

Watch Video: The economic affairs secretary today announced an increase in government borrowing for the second half of the fiscal (FY12) by Rs 52800 crore. He pointed towards the decline in small savings to be the reason behind the increase in gross borrowing.