India to borrow more for fiscal deficit: Chidambaram

NEW DELHI Mon Nov 5, 2012 11:52am IST

Finance Minister P. Chidambaram attends an interview with Reuters at a hotel during his visit for the G20 meeting in Mexico City November 4, 2012. REUTERS/Edgard Garrido/Files

Finance Minister P. Chidambaram attends an interview with Reuters at a hotel during his visit for the G20 meeting in Mexico City November 4, 2012.

Credit: Reuters/Edgard Garrido/Files

Related Topics

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)

FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Focus on sectors which will build India: Ambareesh Baliga.  Full Article 

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage