India plans to borrow $61 billion
New Delhi, March 29, 2014
India will borrow a gross 3.68 trillion rupees ($61.4 billion) in the first half of the fiscal year that begins on April 1, or 61.6 per cent of the full-year target, Arvind Mayaram, the country's economic affairs secretary, said yesterday.
In the interim budget unveiled in February, the Congress-led government had announced it would borrow 5.97 trillion rupees ($99.68 billion) via bond sales during the full fiscal year ending in March 2015.
The first-half borrowing is in line with the country's traditional practice of raising 60-65 per cent of the budgeted amount for the full year during the April-September period. India borrowed around 65 per cent of its full year needs during the first half of 2013/14.
Still, bond investors worry India will be forced to raise its borrowing target for the next fiscal year regardless of who wins elections concluding in May, given concerns the current government's clampdown in spending is seen as unlikely to be sustained.
The government will borrow 680 billion rupees each in April and May from markets, and it can borrow up to 350 billion rupees from the Reserve Bank of India in short-term debt during April-September.
Meanwhile, Mayaram said the government will also borrow 400 billion rupees through treasury bills in April-June.-Reuters