The Ministry of Finance and Reserve Bank of India (RBI) officials would decide on the borrowing calendar for April-September on March 25, a senior finance ministry official said on Tuesday.
Finance Minister Pranab Mukherjee, in his post-Budget interaction on February 28, had said the government would conduct borrowing for the coming financial year in a non-disruptive manner, leaving enough space for the private sector’s investment needs.
Government borrowing is typically frontloaded, with 60-65 per cent of the plan completed in the first half of the financial year itself, as tax proceeds are poor in this period.
The government’s gross borrowing for 2011-12 has been pegged at Rs 4.17 lakh crore, as against Rs 4.47 lakh crore this financial year. The net borrowing is pegged at Rs 3.43 lakh crore, as against Rs 3.35 lakh crore for 2010-11.
About the borrowing plan for this year, the official said the government was unlikely to borrow the last tranche of Rs 10,000 crore due this month.
“We will allow it to lapse as we are comfortably placed,” the official said. In that case, this year’s borrowing will settle at Rs 4.37 lakh crore on a gross level and Rs 3.25 lakh crore on a net basis.