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Government may borrow 5.8-6 trillion rupees next FY - StanChart

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Reuters
Last Updated : Feb 13 2014 | 1:29 PM IST

Reuters Market Eye - Standard Chartered Bank estimates the government will announce on Monday gross borrowing for 2014/15 of 5.8-6 trillion rupees, based on the government's fiscal deficit target of 4.2 percent of GDP.

Finance Minister P. Chidambaram is due to unveil the interim budget on Monday, ahead of general elections.

StanChart adds the government could budget for a higher drawdown of cash balance in fiscal 2015 than in fiscal 2014, given the amount of redemptions.

The bank also estimates the government will end 2013/14 with a cash surplus of about 1 trillion rupees, despite the cancellation of the 150-billion-rupee auction, as national small savings fund collection had exceeded the budgeted amount by 361 billion rupees as of end-December 2013.

(Reporting by Subhadip Sircar

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First Published: Feb 13 2014 | 1:18 PM IST

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