No need for additional government borrowing; PSUs capex may go up this fiscal: Official

The government on Thursday said that it was sticking to its budgeted target of borrowing while adding that the capital expenditure of Central Public Sector Establishments (CPSUs) is likely to increase by Rs 25,000 crore apart from the budgeted Rs 3,75,000 crore.

"Finance Minister Arun Jaitley reviewed the status of capital expenditure with the CPSEs. During the review it was found that all CPSES are on track, though there may be a shortfall for 1-2. It gave a clear picture that Rs 3,75,000 crore capex planned budgeted target for CPSEs will be met," Economic Affairs Secretary Subhash Chandra Garg told reporters.

"Another Rs 25,000 crore capex is expected this year," he added.

The government also reviewed its borrowing programme for 2017-18 and said that there would be no need for additional borrowing over the budgeted Rs 5,80,000 crore, but however left a scope for addition after re-assessment in December.

"The borrowing calendar was finalised. It was decided that the major chunk of borrowing will be done by January, leaving only a small portion for January-March," Garg said.

"After supplementaries are taken care of, in December we will decide if there is need for additional borrowing. There may be a possibility but right now we are on track," he added.

He also added that the government was confident of meeting the fiscal deficit target of 3.2 per cent in the current financial year.

--IANS

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