The astronomical revenue of Rs 67,718.95 crore ($15 billion) generated from the just- concluded auction of spectrum for third generation (3G) telephony will bring down the fiscal deficit and cut borrowings of the Indian government, cabinet secretary K M Chandrasekhar said in New Delhi on Monday.
"These funds (generated from 3G auction) will help us," Chandrasekhar told reporters in New Delhi.
The amount can prune the government's fiscal deficit, pegged at Rs.381,408 crore (around $85 billion) for this year, by nearly one percentage point and slash the estimated government borrowings from Rs.457,000 crore to Rs 422,000 crore, providing some much-wanted relief.
Interestingly, the government had initially hoped to rake in Rs 35,000 crore ($7.75 billion) from the auctions for both the 3G services and broadband. However, the 3G auction alone fetched the exchequer an unexpected Rs 67,718.95 crore ($15 billion).
The auction for broadband wireless access (BWA) spectrum kicked off on Monday, with the potential to muster another $7.5 billion for the government.