Govt borrowing down 27% to Rs96,000cr

The government is expected to raise Rs 5,000 crore in the first week of February even as market borrowing declined 27% to Rs 96,000 crore
till January 20, 2005.

"The government has completed Rs 96,000 crore of its market borrowing, constituting 90.6% of its revised gross borrowing target of Rs 1,06,000 crore," PNB Gilts said in its latest report.

The market borrowing till January 20 was 27% lower than Rs 1,31,500 crore raised in the year-ago period.

Net borrowing, after redemption of securities worth Rs 56,316 crore, declined 57% to Rs 39,684 crore when compared with Rs 93,032 crore
during the corresponding period in 2003-04.

"Net borrowing has been completed to the extent of Rs 39,684 crore, constituting 86.9% of the revised net borrowings of Rs 45,684 crore," it said.

The government is expected to raise Rs 5,000 crore through 15-19 year papers in the first week of February.

Yields are likely to come under some pressure due to lack of appetite for long-term papers, the report said.