Govt borrowing not to disrupt market: RBI Governor
Within hours of the government deciding, in consultation with the RBI, to raise an additional Rs 46,000 crore during the current fiscal, Governor D Subbarao said.
By PTI |
NEW DELHI: Within hours of the government deciding, in consultation with the RBI, to raise an additional Rs 46,000 crore during the current fiscal, Governor D Subbarao said the central bank would ensure that there is no disruption in the money market while raising funds for the government.
"The calendar has already come out. The quantum and mode of borrowing has come out ... we are going to manage the borrowing in such a way that there is no disruption in the market," he told reporters today on the sidelines of a function here to release a book on monetary policy.
The RBI Governor further said that the central bank would come out with a detailed programme for raising funds for the government during the course of the week.
Earlier in the day the Finance Ministry, in consultation with the RBI, decided to borrow an additional Rs 46,000 crore in four tranches between February 20 and March 20.
Subbarao also clarified that the RBI will not raise funds for the government through private placement of bonds.
The government had earlier came out with two stimulus packages to boost economy reeling under the impact of the global financial meltdown.
The initiatives taken by the government include a four per cent cut in excise duty and hike in public expenditure, slated to go up to Rs 9,00,000 crore, 20 per cent more than what was estimated in the budget for 2008-09.
"The calendar has already come out. The quantum and mode of borrowing has come out ... we are going to manage the borrowing in such a way that there is no disruption in the market," he told reporters today on the sidelines of a function here to release a book on monetary policy.
The RBI Governor further said that the central bank would come out with a detailed programme for raising funds for the government during the course of the week.
Earlier in the day the Finance Ministry, in consultation with the RBI, decided to borrow an additional Rs 46,000 crore in four tranches between February 20 and March 20.
Subbarao also clarified that the RBI will not raise funds for the government through private placement of bonds.
The government had earlier came out with two stimulus packages to boost economy reeling under the impact of the global financial meltdown.
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The initiatives taken by the government include a four per cent cut in excise duty and hike in public expenditure, slated to go up to Rs 9,00,000 crore, 20 per cent more than what was estimated in the budget for 2008-09.
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