Govt to again revise target of borrowing for fourth quarter
In order to meet the additional expenditure to boost economic growth, the government is once again proposing to revise the borrowings target for the last quarter of the fiscal in consultation with the Reserve Bank.business Updated: Feb 01, 2009 11:54 IST
In order to meet the additional expenditure to boost economic growth, the government is once again proposing to revise the borrowings target for the last quarter of the fiscal in consultation with the Reserve Bank.
The government had earlier on January 6 raised the borrowings target for the fourth quarter (January-March 2009) to Rs 50,000 crore from Rs 35,000 crore to garner funds for meeting rising expenses.
"Though the discussions are being held with the RBI but no final decision on the amount of additional borrowing has been taken so far," said a senior government official in the Finance Ministry on the issue.
Early January, Parliament had approved additional Rs 1,47,000 crore public expenditure through two demands for grants over and above Rs 7,50,884 crore provided in the budget for 2008-09.
In the two stimulus packages, the government cut excise duty by four per cent, raised public expenditure by Rs 20,000 crore and provided a reprieve for exporters with higher rates for tax refunds.
While the government is under pressure to raise more funds to finance the stimulus packages and extra expenditure in the face of falling revenue, there is an equal concern of rising deficit.
The combined fiscal deficit of the Centre and states will cross 10 per cent of GDP this fiscal year as India spent more and cut taxes to spur growth, Prime Minister's economic panel had said.
Expenditure largess on social schemes and stimulus packages have pushed the fiscal deficit during April-December to Rs 2,18,262 crore, one-and-half times more than what was estimated in the budget, according to the data released by the Controller General of Accounts.