Modi govt cuts annual borrowing target by Rs 8000 cr

The Central Government on Friday said it would borrow Rs 2.40 lakh crore from markets in the second half of the current fiscal, Rs 8,000 crore less than the annual estimate.

With this, the borrowing by way of dated securities (G-secs) for the entire fiscal will total Rs.5.92 lakh crore as against the Budget Estimate (BE) of Rs 6 lakh crore.

“Total borrowing for the fiscal year has been revised to Rs 5.92 lakh crore, which is Rs 8,000 crore less than BE of Rs 6 lakh crore,” said Finance Secretary Arvind Mayaram after the borrowing calendar was finalised by the government in consultation with the Reserve Bank of India.

The top Finance Ministry official also said the government was sticking with the fiscal target of 4.1 per cent of the GDP for 2014-15 irrespective of the cut down in the market borrowings.

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Mayaram further said in the third quarter there would be no additional borrowing through T-bills, which means the treasury bills maturing in the quarter will be rolled over.

T-bills borrowing during the October-December 2014 quarter will be Rs.1.98 lakh crore, the RBI said. The reduction in government’s borrowing plans will provide additional Rs.8,000 crore for private sector in the market.

PTI