The government, standing firm on its fiscal commitment and sending a strong signal that it is determined to meet the fiscal deficit target for the full year, has said that it will not borrow more than Rs 2.35 lakh crore in the second half of the current fiscal, as originally planned in the budget. The borrowings were Rs 3.44 lakh crore in the first six months of the current fiscal, keeping the government’s gross borrowing programme for 2013-14 intact at Rs.5.79 lakh crore.
The Reserve Bank of India, in consultation with the government, has issued an indicative calendar for issuance of Government dated securities (G-Secs) for the second half of the fiscal year 2013-14 totalling Rs 2,35,000 crore. The H2 FY14 borrowing programme will close in the first week of February. While 45 percent G-Sec to be sold will be of 10-14 years tenor, 25 percent will be of 5-9 years tenor, and 20 percent will be of 15-19 years tenor. Month of November will see the maximum auction of securities worth Rs 60,000 crore, followed by December, January and October.
Department of Economic Affairs Secretary Arvind Mayaram said any shortfall in revenues will be met by cutting non-essential expenditure and further said that “We are going to finance oil subsidies through budgetary resources.”
The government’s commitment to keep the borrowing in the limit has came as a respite amid concern of fiscal slippage with subsidy bill rising because of the depreciation in the value of the rupee vis-a-vis the dollar and rise in global crude prices.
The Reserve Bank of India, in consultation with the government, has issued an indicative calendar for issuance of Government dated securities (G-Secs) for the second half of the fiscal year 2013-14 totalling Rs 2,35,000 crore. The H2 FY14 borrowing programme will close in the first week of February. While 45 percent G-Sec to be sold will be of 10-14 years tenor, 25 percent will be of 5-9 years tenor, and 20 percent will be of 15-19 years tenor. Month of November will see the maximum auction of securities worth Rs 60,000 crore, followed by December, January and October.
Department of Economic Affairs Secretary Arvind Mayaram said any shortfall in revenues will be met by cutting non-essential expenditure and further said that “We are going to finance oil subsidies through budgetary resources.”
The government’s commitment to keep the borrowing in the limit has came as a respite amid concern of fiscal slippage with subsidy bill rising because of the depreciation in the value of the rupee vis-a-vis the dollar and rise in global crude prices.
No comments:
Post a Comment