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Rise in small savings likely to ease borrowing pressure: official
April 16, 2012 / 5:22 AM / 6 years ago

Rise in small savings likely to ease borrowing pressure: official

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.

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

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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