India to Reduce Market Borrowing

The Government of India in September 2010 decided to reduce its market borrowing by a whopping Rs 10000 crore in the second half of the current fiscal (2010-11). The revenue generated from the auction of 3G spectrum made it possible for the government to reduce market borrowing. Previously, borrowing level of Rs 1.73 lakh crore for October-March 2011 was decided upon. As against the earlier set amount, the government would decide to borrow Rs 1.63 lakh crore during this period. The Centre's total borrowing for the fiscal (2010-11) would thus be Rs 4.47 lakh crore as against earlier planned Rs 4.57 lakh crore. In the first half of the ongoing 2010-11 fiscal the government raised Rs 2.84 lakh crore through market borrowings. In 2009-10, the Centre's overall borrowing stood at Rs 4.5 lakh crore.