The government on Thursday reduced its gross borrowing programme by Rs. 10,000 crore to Rs. 4.47 lakh crore for the current fiscal, thanks mainly to a revenue windfall from sale of 3G telecom licences earlier this year.
The government has already raised over Rs. 2.6 lakh crore this fiscal so far and would mop up another over Rs. 20,000 crore this month.
As per the borrowing plan fixed by the Finance Ministry and RBI officials on Thursday, the government would raise another Rs. 1.63 lakh crore in the second half of 2010-11.
Scaling down of the borrowing plan would leave the desired resources for the private sector.
“We are required, to as per the programme given earlier, to raise Rs. 1.73 lakh crore (in the second half of FY’11).
Looking at the projected cash flows and current requirement, we think it is not required to raise the whole amount. The amount reduced is at present by Rs. 10,000 crore to Rs 1.63 lakh crore,” Finance Secretary Ashok Chawla told reporters here.
According to its earlier plan, the government had pegged its total market borrowings at Rs 4.57 lakh crore for this fiscal.
