The government will borrow an additional Rs 46,000 crore during this fiscal year to finance measures announced to stimulate the economy.
“We had discussions with the Reserve Bank. Borrowing (extra) between February 20 and March 20 is going to be Rs 46,000 crore”, Economic Affairs Secretary Ashok Chawla said after meeting RBI Deputy Governor Shyamala Gopinath.
The amount will be raised through dated securities in four tranches.
In recent months the government has taken a slew of fiscal measures including sharp cuts in excise duties and increased plan spending to help the economy tide over the ripple of a recession in the world’s developed countries.
But those sops are set to push up the Centre’s fiscal deficit to a worrisome 7.9 to 8 percent of GDP, including off-budget expenses like oil and fertiliser subsidies.