Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: 3.3
Article rating: 5.0
RSS

News

Govt cuts market borrowing target by Rs 70,000 crore

Author: PTI/Saturday, September 29, 2018/Categories: Government

Govt cuts market borrowing target by Rs 70,000 crore

New Delhi - The government on Friday announced reduction in gross marketing borrowing estimate for 2018-19 as it expects "some more funds" from the popular small savings schemes, which will attract higher interest rate in the October-December quarter.

The finance ministry also stressed that the government would meet the fiscal deficit target of 3.3% of GDP during the year ending March 2019.

Giving details about the borrowing programme for the remaining six months of the fiscal, Economic Affairs Secretary S C Garg said the government would be borrowing Rs 2.47 lakh crore as compared to Rs 2.88 lakh crore during April-September of 2018-19.

The Centre will also be launching inflation-indexed bonds, the secretary said, adding one or two bond issues will come in the current fiscal.

The government had budgeted a gross borrowing programme of Rs 6.05 lakh crore, which now stands reduced by Rs 70,000 crore.

"Since our fiscal deficit is not being affected at all, we have decided to continue with the net borrowing programme as it is," he said.

"However, we had some rethink on the buyback programme as well as we expect some more funds to flow from small savings. So, as a result we decided to reduce the total borrowing requirement for the year by Rs 70,000 crore," Garg told reporters here.

Market borrowings are undertaken to bridge the revenue expenditure mismatch or fiscal deficit.

The secretary further said the government was not looking at financing fiscal deficit from any other market means.

"Our borrowing programmes are sufficient for our fiscal needs. We also decided that Ways and Means advances would be Rs 35,000 crore only in the second half. And further in March, it will be kept only at Rs 25,000 crore," he added.

The government resorts to 'Ways and Means' to meet temporary gaps in cash management.

The net borrowing was Rs 2 lakh crore in the first half of the year while it will come down to 1.90 lakh crore in the remaining six months.

The reduction of Rs 70,000 crore through borrowings would be managed by a mix of reducing buybacks as well as additional flows from small savings, he added.

The government will have a borrowing of Rs 11,000 crore per week until beginning of November, and thereafter borrowing of Rs 12,000 crore (as was in the first half of the fiscal).

Garg also said a decision has been taken to introduce inflation indexed bonds during the second half this year.

"Since this is a new instrument, we expect one or two issues to be made in the current half year," he added.

On fiscal deficit, he said the government does not anticipate any slippages on fiscal deficit front.

He expects the revenue collection to be in line with the budget estimates.

"Even the expenditure programme, even after taking into account MSP and Ayushman Bharat, we are on track. Therefore there is no need to revise the fiscal deficit at all. So the FD stays at 3.3%," he added.

Print Rate this article:
No rating

Number of views (169)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free