The Centre will front load its borrowing programme for FY15 and will raise gross Rs 3.68 lakh crore from the market through dated securities between April and September 2014.
“This is 61.5 per cent of the total gross borrowing target of Rs 5.97 lakh crore for the full fiscal,” said Arvind Mayaram, secretary, department of economic affairs after a meeting with HR Khan, deputy governor of the Reserve Bank of India. This is in line with expectations and leaves room for the private sector to raise funds in the second half of the fiscal. In FY14, of the gross borrowing of Rs 5.63 lakh crore, 65 per cent was raised in the first half.
The net borrowing for the first half of next fiscal is targetted at Rs 2,93,000 crore through a mix of dated securities, treasury bills and inflation indexed bonds and will also include switching of government paper. “This is in line with the fiscal consolidation roadmap. We have assessed demand from banks and other long term investors, which is robust,” said Mayaram. According the Interim Budget, the net borrowing for FY15 is estimated at Rs 4.57 lakh crore, which is about 3 per cent less than that of this fiscal.
Fiscal deficit target to be met: FinMin
New Delhi: The finance ministry on Friday expressed confidence that the fiscal deficit target for FY 14 will be met. “The fiscal deficit currently stands at 98 per cent of the Budget target and we intend to keep it within limits,” said Arvind Mayaram, secretary, department of economic affairs. For FY14, the fiscal deficit was pegged at 4.6 per cent in the Interim Budget, lower than the earlier target of 4.8 per cent of the GDP.
However, the Centre’s fiscal deficit by January 2014 had exceeded the Budget target at Rs 5.32 lakh crore or 101.6 per cent of the revised estimate of Rs 5.24 lakh crore. ENS
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