If approved, it would be the second additional borrowing than that originally announced in the Budget 2011-12. As per the revised target, gross market borrowing for the current fiscal is pegged at Rs4.7 lakh crore
New Delhi: The government is looking at borrowing around Rs40,000 crore more to make up for the shortfall in revenue receipts and poor disinvestment realisation in the current fiscal, reports PTI.
“The government might borrow Rs30,000-Rs40,000 crore to plug a shortfall in receipts in current fiscal year,” a senior finance ministry official told PTI.
If approved, it would be the second additional borrowing than that originally announced in the Budget 2011-12. As per the revised target, gross market borrowing for the current fiscal is pegged at Rs4.7 lakh crore.
Earlier this week, a top finance ministry official had admitted that the government is finding it difficult to meet direct tax target due to industrial slowdown and may go in for larger market borrowings.
“There has to be extra (market) borrowing to bridge (the revenue) deficit. If the deficit increases then the government will have to borrow,” the official had said without revealing how much more the government may borrow.
The government is looking to mop up Rs5.32 lakh crore from direct taxes, from corporate and personal income taxes.
The net direct tax collection has been Rs2.35 lakh crore during the first eight months of this fiscal.
In September, the government had announced an additional market borrowing of Rs52,800 crore on top of Rs4.17 lakh crore planned in the Budget.
Besides, slowdown in the economic activities due to domestic and global factors, the government’s subsidy bill on petroleum and fertilisers is likely to increase further.
Finance minister Pranab Mukherjee said recently that the subsidy bill in 2011-12 is likely to go up by a whopping Rs1 lakh crore on account of higher outlays towards fertiliser, food and oil.
In the Budget, the government had earmarked Rs1.34 lakh crore towards major subsidies—fertiliser, food and oil.
Madhusudan Ganpathi, an IFS officer of 1975-batch, who is now secretary (west) in the external affairs ministry had informed the ministry in March that the officials of Loop Telecom had met him and sought details about the Letters Rogatory sent by the CBI in connection with the probe into certain transactions by a dozen companies from that country
New Delhi: The Central Bureau of Investigation (CBI) may present a former Indian High Commissioner to Mauritius as a prosecution witness in the trial of alleged irregularities in the second generation (2G) spectrum allocation awarded to Loop Telecom, reports PTI.
Madhusudan Ganpathi, an IFS officer of 1975-batch, who is now secretary (west) in the external affairs ministry had informed the ministry in March that the officials of Loop Telecom had met him and sought details about the Letters Rogatory sent by the CBI in connection with the probe into certain transactions by a dozen companies from that country.
The ministry in turn communicated to the CBI about the questions posed by Loop officials, agency sources said.
During the trial, CBI may raise the issue of the meeting of Loop officials with the Indian High Commissioner during the trial as it feels that it was aimed at influencing the probe, CBI sources said.
When contacted, Loop Telecom refused to give comments saying the matter is sub-judice.
In its second supplementary charge-sheet filed before a special court here, the CBI has listed Mr Ganpathi as witness number 29, among 100 witnesses which may be produced by the agency, whose statement is yet to be recorded.
The agency, through its judicial requests, had said that “allegations have also surfaced that some public servants of the Government of India have stakes in Etisalat DB Telecom Pvt Ltd (formerly Swan Telecom Pvt Ltd) and Loop Telecom through Mauritius based companies.”
Through LR, it had sought collection of documents from the Registrar of Companies, documents and information to be collected from banks besides representatives of these companies in Mauritius.
As part of the strategy to infuse liquidity in the system, the RBI Thursday bought bonds worth Rs8,109.48 crore under open market operations, much lower than the Rs12,000 crore target
Mumbai: As part of the strategy to infuse liquidity in the system, the Reserve Bank of India (RBI) Thursday bought bonds worth Rs8,109.48 crore under open market operations (OMO), much lower than the Rs12,000 crore target, reports PTI.
Four securities were on offer for OMO but the RBI subscribed only to two, the central bank said in a statement.
While the government security (G-Sec) maturing 2018, with a coupon rate of 7.83%, garnered over Rs5,234.89 crore, the 7.80% G-Sec maturing on 2021 garnered Rs2,874.58 crore.
The central bank has infused over Rs33,100 crore in four tranches in the last one month. While it bought bonds worth Rs9,435.48 crore on 24th November, it infused Rs5,782.95 crore on 1st December this year.
On 8th December, it bought bonds worth further Rs9,092.9 crore, followed Rs8,790 crore on 22nd December.
OMOs are the “first preference” of RBI while injecting liquidity and there is an opportunity to raise up to Rs2.74 lakh crore through the window.
RBI deputy governor Subir Gokarn had last month said that liquidity is likely to be under pressure for some more time on account of such as advance tax payments.
Overnight drawings by banks from RBI’s liquidity adjustment facility have exceeded Rs1,20,000 crore and it has said in the past that deficit has exceeded its targeted 1% of net demand and time liabilities (NDTL).