Centre's market borrowing is set to go up by 42% to Rs 1,00,836 crore in 2005-06 as the government faces the uphill task of hiking spending for social sectors and yet keeping fiscal deficit under control at 4.3% of GDP.The union budget, presented by finance minister P Chidambaram in parliament today, shows a fall in borrowings to Rs 71,034 crore this fiscal as against the budgeted Rs 1,15,501 crore in a year which witnessed spiralling inflation and yields on government bonds.However, the budget proposed a hike in borrowing to Rs 1,00,836 crore for the next fiscal as inflation has shown signs of moderation in recent months.The budget estimates short-term borrowings at Rs 24,474 crore in 2005-06, which includes market stabilisation scheme of Rs 18,019 crore and net borrowings of Rs 6,500 crore through 182 days T-bills.External assistance is budgeted at Rs 17,184.48 crore of which government plans to repay loans worth Rs 7,528 crore resulting in a net foreign assistance of Rs 9,656 crore for 2005-06.
