New Delhi: The government said on Friday it will borrow a whopping Rs4.57 trillion from the markets next fiscal, while assuring private players that funds in the system will not dry up.
The borrowing amount slated for next fiscal is 1.36% higher than FY10. The government raised a whopping Rs4.51 lakh crore from the market this fiscal. Stimulus measures during the economic slow down strained the government’s finances.
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While announcing this, finance minister Pranab Mukherjee assured the private sector while that “there will be enough space to meet the credit needs of the private sector.”
With the government scheduled to repay Rs1.12 lakh crore for debts next fiscal, the net borrowings will stand at Rs3.45 lakh crore.
Owing to huge market borrowings, the fiscal deficit of the Centre is pegged at Rs3.81 lakh crore, 5.5% of GDP forecast for 2010-11.
However, in percentage terms the fiscal deficit for next financial year is much lower than the budget estimate of 6.8% for 2009-10.
“Taking into account the various other financing items for fiscal deficit, the actual net market borrowing of the government in 2010-11 would be of the order of Rs3.45 lakh crore,” Mukherjee said in his Budget speech.
The government will plan the borrowing programme in consultation with the Reserve Bank of India, he said.