Centres Gross Borrowing Crosses Rs 100,000 Crore

New Delhi, Nov 7: | Updated: Nov 8 2003, 05:30am hrs
The governments market borrowing crossed Rs 1,00,000 crore till November one, as fiscal deficit surged to over Rs 81,014 crore in first half of 2003-04, PNB Gilts said in its latest report.

Government has now completed Rs 1,01,030 crore of its gross borrowing, constituting 60.77 per cent of the budget estimate of Rs 1,66,230 crore, PNB Gilts said.

The central government garnered Rs 5,000 crore through 15-year paper and another 1,000 crore in treasury bills in the last two weeks.

The gross borrowing till November one this fiscal was, however, lower than Rs 1,11,033 crore mopped up during the same period last fiscal.

After redeeming securities worth over 33,717 crore, the centres net borrowings stood at Rs 67,313 crore, constituting 62.79 per cent of the budgeted Rs 1,07,194 crore, it said.

The net borrowing till November one this fiscal was comparatively lower than Rs 79,318 crore in the same period last fiscal.

Seen in the context of mounting fiscal deficit of the Centre till September 2003, the surge in borrowing becomes significant.

Fiscal deficit stood at Rs 81,014 crore in the first six months of this fiscal, which works out to 52.7 per cent of the budgeted estimate for the entire year 2003-04.

In relative terms, fiscal deficit grew by 40 per cent from Rs 57,746 crore in April-September 2002, to Rs 81,014 crore in the first half of 2003-04, PNB Gilts said.

The governments decision to utilise the proceeds of state debt swap scheme to repay its own debt to the national small savings fund translated into the sharp rise in deficit, it said.

PTI