Funds for pvt sector no problem: FM

The government had borrowed Rs 3,06,000 crore from the markets last year and this year,too,the borrowings are estimated to be over Rs 4 lakh crore to bridge its fiscal deficit pegged at 6.8 per cent in 2009-10. This is up from 6 per cent in 2008-09 on the back of increased borrowings from the market to inject liquidity into the economy through three stimulus packages.

I have a very high level of borrowing for the current year also because I chose to come back to the growth trajectory and the private investment at present cannot be expected to meet the full requirement. That is why it was decided to expedite the public expenditure and it had to be depended on heavily, said Mukherjee.

The finance minister also stated that the government is working in close cooperation with the central bank.

There is no inherent contradiction that we are pursuing or following with the Reserve Bank of India in reference to the annual monetary and the fiscal policies. We are working in close cooperation. We have done it in the worst period of the present crisis, he said.

On interest rates,the finance minister stated that the Reserve Bank of India had taken various steps and would take measures required by the situation.

The Reserve Bank has taken various steps throughout the crisis period. As and when the situation requires,appropriate action will be taken, the finance minister stated.

The meeting was attended by the Reserve Bank of India governor,deputy governors,finance secretary and other board members.