Government will borrow Rs.460 bn by late March

February 10th, 2009 - 5:26 pm ICT by IANS  

New Delhi, Feb 10 (IANS) With the economic crisis taking a toll on the Indian economy, the government plans to borrow Rs.460 billion (about $9.45 billion) by late March from the market, a senior finance ministry official said Tuesday.

“We already had discussions with the Reserve Bank of India (RBI). The borrowing will be between Feb 20 and March 20 to the order of Rs.46,000 crore,” Department of Economic Affairs Secretary Ashok Chawla told reporters after meeting RBI Deputy Governor Shyamala Gopinath.

He said the extra borrowing would be done in four tranches.

“The stimulus is almost running into Rs.1.5 trillion ($31 billion) by way of excess expenditure and Rs.500 billion by way of loss of revenue from direct and indirect taxes,” Chawla had told reporters Monday.

“This year because of stimulus, because of downturn, the (borrowing) requirement has been more. Therefore, whatever is the requirement of the government, it will have to be met through borrowing,” he had said.

–Indo-Asian News service

ash/ank/dg

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