Govt likely to stick to budgeted borrowing plan in H2

The government, however, could tinker with its borrowing programme towards the close of 2014 in view of the performance of the economy

The government is likely to stick to its scheduled borrowing programme of Rs 2.3 lakh crore for the second half of the financial year. The details for the period (October-March), according to sources, will be decided at a meeting between the finance ministry and the Reserve Bank of India on September 26.

“The government borrowing is expected to be in line with the Budget announcement,” a source said.

The government borrows from the market through issue of treasury bills and dated securities to meet the fiscal deficit. The fiscal deficit for the current financial year has been pegged at 4.1 per cent of gross domestic product.

“The target is ambitious, so increasing the borrowing now can put the government in a precarious position,” the source said.

The government, however, could tinker with its programme towards the end of 2014, in line with performance of the economy.