The government is looking at borrowing around Rs 40,000 crore more to make up for the shortfall in revenue receipts and poor disinvestment realisation in the current fiscal.
"The government might borrow Rs 30,000-40,000 crore to plug a shortfall in receipts in current fiscal," a senior finance ministry official said.
If approved, it would be the second additional borrowing than that originally announced in the Budget 2011-12. As per the revised target, gross market borrowing for the current fiscal is pegged at Rs 4.7 lakh crore.
Earlier this week, a top Finance Ministry official had admitted that the government is finding it difficult to meet direct tax target due to industrial slowdown and may go in for larger market borrowings.
"There has to be extra [market] borrowing to bridge [the revenue] deficit. If deficit increases then the government will have to borrow," the official had said without revealing how much more the government may borrow.
The government is looking to mop up Rs 5.32 lakh crore from direct taxes, from corporate and personal income taxes. The net direct tax collection has been Rs 2.35 lakh crore during the first eight months of this fiscal.
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In September, the government had announced an additional market borrowing of Rs 52,800 crore on top of Rs 4.17 lakh crore planned in the Budget.
Besides, slowdown in the economic activities due to domestic and global factors, the government's subsidy bill on petroleum and fertilisers is likely to increase further.
Finance Minister Pranab Mukherjee said recently that the subsidy bill in 2011-12 is likely to go up by a whopping Rs 1 lakh crore on account of higher outlays towards fertiliser, food and oil.
In the Budget, the government had earmarked Rs 1.34 lakh crore towards major subsidies -- fertiliser, food and oil.