The Union Government of India on 18 February 2013 cancelled the bond auctions worth 12000 crore Rupees, thereby bringing down the market borrowing programme for 2012-2013 fiscal year in order to contain fiscal deficit at 5.3 percent.
With this decision, the overall market borrowing of government in 2012-2013 fiscal year came down to 5.58 lakh crore Rupees from 5.70 lakh crore Rupees as imagined in 2012-2013 budget. The Finance Ministry announced that after reviewing the cash position as well as the funding requirement of the government, it was decided that market borrowing of the Government through dated securities by 12000 crore Rupees would be reduced.
Also, the auction for these dated securities which was scheduled to be held on 22 February 2013 was cancelled. As of now, the government borrowed 3.7 lakh crore Rupees in first half of the fiscal year which ended on 30 September 2012. This is 65 percent of the overall planned borrowing.
The Government also gave directions to the ministries to control the non-plan expenditure from January to March quarter.