Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
June 2, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report June 2, 2001 |
Feedback
|
|
|
Government in borrowing overdriveP Vaidyanathan Iyer Going by the government borrowings in April-May this year, it looks near certain that the budgeted borrowings for the current fiscal will be surpassed. Net borrowings in the first two months of 2001-02 have already crossed the half-way mark. At Rs 412.50 billion, the net borrowings during April-May surpassed 53 per cent of the budgeted estimate of Rs 773.53 billion for the entire fiscal. In the last fiscal, net borrowings during the first two months was much lower at Rs 247.06 billion or 33 per cent of the budgeted estimate of Rs 738.62 billion. Sources said that out of the Rs 457.50 billion gross borrowings in April-May this year, the government privately placed Rs 170 billion with the Reserve Bank of India. This RBI credit to the government, netted against the apex bank's open market operations, represents the monetised deficit resulting in increased money supply and potentially inflationary trends. Another area of concern, sources said, is the redemptions in April-May 2001, which is only Rs 45 billion (or 9.8 per of the gross borrowings as on date) against Rs 74.77 billion (or 23 per cent of gross borrowings) during April-May 2000. In the current fiscal, the government has to undertake further redemptions of almost Rs 370 billion, which will again have to be met by borrowings. Meanwhile, tax revenues for April 2001 have revealed disturbing figures-it dipped 85 per cent to Rs 1.56 billion compared to last April, and now the possibility of the government overshooting its expenditure limit on the food and fertiliser subsidy account also looms large. According to sources, savings on the interest payments front is the only silver lining on the expenditure front. The Centre has, however, managed to rein in the fiscal deficit for 2000-01 to 5.21 per cent of the gross domestic product, amounting to Rs 1143.69 billion. This is mainly due to an expenditure saving of Rs 159.13 billion compensating for a sizeable shortfall of Rs 151.78 billion in total revenue collection. The final data of the Union government accounts were released by the Controller General of Accounts today, a day late, with finance ministry officials working to iron out glitches including reconciling the defence pension figures with the civil accounts. Powered by YOU MAY ALSO WANT TO READ:
|
||||
