Rise in small savings likely to ease borrowing pressure: official

NEW DELHI Mon Apr 16, 2012 10:47am IST

An employee uses an electronic machine to check an Indian currency note inside a bank in Allahabad December 16, 2011. REUTERS/Jitendra Prakash/Files

An employee uses an electronic machine to check an Indian currency note inside a bank in Allahabad December 16, 2011.

Credit: Reuters/Jitendra Prakash/Files

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NEW DELHI (Reuters) - An increase in small savings collections is likely to reduce pressure of government borrowing via dated securities and treasury bills in the current fiscal year, the economic affairs secretary told CNBC TV18 news channel on Monday.

Earlier this month, the government raised interest rates on small savings investment schemes through post offices by up to 0.5 percent.

"I am sure that pressure on the markets for dated securities as well as tbills will go down," R. Gopalan said, adding the government would try to find ways and means to bring down the market borrowings close to the level of last fiscal year.

The government aims to borrow 5.7 trillion rupees from the market in the 2012/13 fiscal year through dated securities, compared with 5.1 trillion rupees in the previous fiscal year.

(Reporting by Manoj Kumar; editing by Malini Menon)

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