In a bid to contain the fiscal deficit at the targeted level of 5.3 per cent of the GDP (gross domestic product) in the current fiscal, the Government on Monday announced its decision to cancel the auction of dated securities for Rs. 12,000 crore scheduled for February 22.

The reduction in market borrowings by Rs. 12,000 crore during the fiscal year is ostensibly on account of curtailed government spending and help in getting close to the fiscal deficit target.

Making the announcement, the Finance Ministry statement said: “On review of the Government of India’s cash position and funding requirement, it has been decided, in consultation with Reserve Bank of India (RBI), to reduce the government market borrowing through dated securities by Rs. 12,000 crore for the current financial year”. “Accordingly, the auction for dated securities scheduled on February 22, 2013 for Rs. 12,000 crore has been cancelled,” it said.

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