The Indian Government would borrow an additional Rs.1,40,000 crore in the first half of next fiscal to fund public expenditure, reported the PTI.
During a meeting at the Reserve Bank to work out the modalities of the debt-raising programme, Economic Affairs Secretary Ashok Chawla, reportedly said the gross borrowings, including funds for repayment of maturing bonds, amount to Rs.2,41,000 crore. Reserve Bank Governor represented the apex bank at the meeting.
As per the Interim Budget for 2009-10, the government proposes to borrow an additional Rs. 3-lakh crore during the year. Chawla said that Rs.48,000 crore would be raised every month in the first quarter and Rs.32,000 crore would be raised every month in the second quarter.
Chawla also said that the higher amount is raised in the first quarter as redemptions are more during this period and said that private placement programme is not required. He added that the funds would be met through normal borrowing programme.
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