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Rediff News  All News  » Business » Govt to borrow 2.87 lakh cr in H1

Govt to borrow 2.87 lakh cr in H1

March 29, 2010 17:44 IST

LoansThe government will borrow Rs 2.87 lakh crore (Rs 2.87 trillion) from the markets in the first half of the next fiscal, which is about 63 per cent of the total gross borrowing requirement for 2010-11.

The borrowing in the first half of the next fiscal will be less front-loaded (borrowing in tranches) than the similar period of the outgoing fiscal because access to overseas borrowings will be lot more improved next fiscal, finance secretary Ashok Chawla told reporters here today after a meeting with the Reserve Bank of India.

"This year in the first half, 73 per cent of the total borrowing was mopped up. So, in the first half of the next fiscal, it is slightly on the lower side. We expect, based on the inflow and outflow trends in the economy and the fact that corporates and institutions will have good access to external commercial borrowings," Chawla said.

To a query whether government borrowings will be smooth, RBI deputy governor Shyamala Gopinath said it is always the endeavour.

The government will borrow in tranches of Rs 11,000-15,000 crore (Rs 110-150 billion) every week in April through September depending on repayment of earlier bonds.

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