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Higher economic outlay pushes govt borrowings next fiscal

Higher economic outlay pushes govt borrowings next fiscal
PTI
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First Published: Mon, Feb 16 2009. 10 16 PM IST
Updated: Mon, Feb 16 2009. 10 16 PM IST
New Delhi: In order to fund higher expenditure to stimulate the slowing economy, the Centre in FY2010 will raise Rs3,08,647 crore, 17% higher than this fiscal, of which Rs45,000 crore will be mopped up from sources other than market borrowings and private placement.
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“We will neither raise it (Rs45,000 crore) through market borrowing nor private placement or bonds. We will decide on the modalities later,” finance secretary Arun Ramanathan told media when asked how the government will mobilize the fund.
The government will raise Rs2,63,647 crore through market loans in the year 2009-10, which is Rs1,675 crore higher than the estimated borrowings for the current year.
Infact, following higher borrowings, the interest payments on the account of the borrowings is also pegged to 17% higher to Rs2,25,511 crore for the next fiscal.
The Centre revised its borrowing a few times due to rising pressure on its expenditure to spur the economy, facing slackening demand.
Latest, it stepped up the borrowings by Rs46,000 crore between 20 February and 20 March.
The fiscal deficit for the year was revised to 6% of GDP, compared with the budgeted figure of 2.5%.
Also, there is a shortfall in revenue collections over the current expenditure with revenue deficit revised to 4.4% of GDP, compared with 1% in the budget estimates.
Video by Mehak Kasbekar
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First Published: Mon, Feb 16 2009. 10 16 PM IST