Officials of the finance ministry and Reserve Bank of India (RBI) would decide on the borrowing calendar for April-September on Friday, March 25.
The Centre would conduct borrowing for the coming fiscal year in a “non-disruptive manner,” leaving enough space for private sector's investment needs.
Finance minister Pranab Mukherjee, in his budget speech for 2011-12, has set out a medium-term roadmap to return to fiscal prudence, targetting to reduce fiscal deficit to 4.6% of gross domestic product (GDP) in 2011-12 and eventually bring it down to 3.5% in the next two years.
The fiscal deficit of R4,12,817 crore for 2011-12 is proposed to be financed through market borrowings of R3,43,000 crore and the balance through a mix of treasury bills, external debt and other instruments.
Government borrowing is typically frontloaded, with 60-65% of the plan completed in the first half of the fiscal year itself, as tax proceeds are relatively low in this period.
At present, of the overall government debt and liabilities, about 92% is domestic debt and only 8% is external debt.