Indian Government to borrow Rs 53k crore more for current fiscal year

Indian Government has announced that it would borrow Rs 53,000 crore more for the current fiscal year than previously estimated. This increase will lift the total government borrowing to Rs 4.7 lakh crore for current financial year 2011-12 compared to previous estimation of Rs 4.17 lakh crore. In the previous fiscal year 2010-11, Government borrowed nearly Rs 4.37 lakh crore. It has also said that the fiscal deficit will be within the target of 4.6% of GDP.

Government has already borrowed Rs 2.5 lakh crore by using government securities during the first half (April-September) of the current financial year. Rest Rs 2.2 lakh crore will be borrowed during the later half of the current financial year. The main reason behind this increase in total borrowing was mainly because of lower tax revenue income due to economic growth slowdown and lower business activity and higher spending by the government which has led to cash shortage for the current financial year.