Pointing out that government borrowings would be less than what was projected for the current fiscal, Union Finance Minister P Chidambaram on Tuesday said that there was pressure on inflation due to rising oil prices and money supply.
"Government borrowing is a problem with high gross fiscal deficit. We would borrow less than projected due to better management of cash flows," he said while addressing the annual general meeting of Bombay Chamber of Commerce and Industry in Mumbai.
If people pay taxes promptly that will also help the situation, he said.
"There is pressure on inflation front due to money supply," he added. -- PTI
Union Finance Minister P Chidambaram in Mumbai on Tuesday. Photograph: Jewella C Miranda
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