New Delhi: The finance ministry and RBI top brass is scheduled to meet on 17 July to discuss ways and means of facilitating the government’s large borrowing programme.
The government plans to borrow nearly Rs4,00,000 crore from the markets during 2009-10, a rise of about 50% over what it borrowed a year ago, to fund the widening fiscal deficit, necessitated after stimulus doses for the economy.
The meeting would take place on 17 July to decide on the borrowing programme, finance secretary Ashok Chawla told reporters in Delhi.
The net market borrowing of the government through dated securities in 2009-10 is estimated at Rs3,97,957.46 crore, finance minister Pranab Mukherjee had said yesterday while presenting the budget 2009-10.
Against the Budget estimate of Rs1,00,571 crore for 2008-09, the government borrowed Rs2,61,972 crore to fund the increasing expenditure required to insulate the domestic economy from the impact of the global financial crisis.
The rise in net borrowing by the Centre would work against the decline in interest rates, as demanded by industry.
The finance minister had said, “To counter the negative fall-out of the global slowdown on the Indian economy, the government responded by providing three focused fiscal stimulus packages in the form of tax relief to boost demand and increased expenditure on public projects to create employment and public assets.”