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No change in govt borrowings: RBI

India's central bank deputy governor Y V Reddy said on Tuesday there was no change in the government's budgeted borrowing programme as a result of its plans to spend in order to spur economic growth.

Reddy had been asked by reporters on the sidelines of a seminar on how the government's efforts to pump-prime the economy would affect fiscal deficit and inflation.

"The effort is to accelerate expenditure as well as to improve tax collection," he said.

"It is inappropriate to conclude that this kind of two-way effort will augment the borrowing programme. As of now there is no revision of the budgeted borrowing programme."

Earlier this month, Finance Minister Yashwant Sinha said he would step up government spending to try to boost economic activity.

GDP growth is estimated to have slowed to 5.2 per cent in 2000-01 from 6.4 per cent a year earlier.

The federal government has budgeted a gross market borrowing programme of Rs 1,188.52 billion for the current financial year (April-March), and aims to curtail the fiscal deficit at 4.7 per cent of GDP.

It has already completed 55 per cent of the budgeted borrowing so far this year, and the debt market expects lower revenues will force the government to exceed its target.

When asked about the expected growth rate in the gross domestic product, Reddy said there was no change from the earlier estimate of six per cent.

"As far as the current indications are concerned there is absolutely no reason to change any of the numbers," he said.

"We still think growth will be close to six percent and we are continuously monitoring."

The authorities are hoping that good monsoons -- which have just begun -- will help turnaround a two-year slowdown in agriculture, which drives about two-thirds of demand in India.

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