India to borrow more for fiscal deficit: Chidambaram
NEW DELHI (Reuters) - The government will borrow more to fund a fiscal deficit that is now estimated at 5.3 percent of GDP this fiscal year, Finance Minister P. Chidambaram told Reuters late on Sunday in Mexico City.
The additional borrowing above the previous target of 5.1 percent will amount to at least 200 billion rupees, a senior finance ministry official told Reuters in New Delhi.
Previously the government had pegged gross market borrowing for the current fiscal year at 5.7 trillion rupees to finance a fiscal deficit that was originally projected at 5.1 percent.
Last month, sluggish tax revenues and high spending on subsidies such as food, fuel and fertilizer forced the government to revise up the deficit target to 5.3 percent.
(Reporting by Rajesh Kumar Singh)
- Tweet this
- Share this
- Digg this
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
Trending On Reuters
U.S. President Barack Obama watched a dazzling parade of India's military might and cultural diversity on Monday, the second day of a visit trumpeted as a chance to establish a robust strategic partnership between the world's two largest democracies. Full Article
Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll. Full Article