Posts
The Government on Tuesday categorically said that it has "no intention" to monetise its debt, which implies that it will not directly borrow from the Reserve Bank of India.
"Government has no intentions of monetising its debt," Finance Minister Pranab Mukherjee told Lok Sabha in his reply to the debate on Union Budget (read budget highlights).
He said during the first half of 2009-10, the Government plans to borrow Rs 2.41 lakh crore from the market and RBI is supporting it through its Open Market Operations (OMO), through which the central bank releases or sucks money from the market against government securities.
"OMO should not be confused with monetisation of debt," Mukherjee said. Monetisation of the Government debt would be when RBI directly subscribes to the Government paper.
(read budget highlights).
As fiscal deficit is projected to be at 6.8 per cent of GDP this fiscal and the Government has pegged its market borrowings at around Rs 4 lakh crore for 2009-10.
Mukherjee also dispelled fears that higher government borrowings would leave little resources for the private sector and would increase cost of borrowings, as also apprehensions that the private sector will be elbowed out due to this.
Tuesday, July 14, 2009
Indian Government not to monetise debt
Subscribe to:
Post Comments (Atom)
1 comment:
Railway Budget 2009-10
* No increase in passenger fare and freight tariff
* Plan outlay of Rs 40,745 crore (US$ 8.34 billion) proposed for 2009-10
* Passenger amenities get high priority, to get Rs 1,102 crore (US$ 225.63 million)
* Freight loading at 833 million tonnes (MT) grew at 5 per cent over the previous year
* Traffic receipts during 2008-09 increased by 11.4 per cent to touch Rs 79,862 crore (US$ 16.34 billion)
* Railways paid full dividend liability of Rs 4,717 crore (US$ 965.14 million) to Government
* Investible surplus of Rs 12,681 crore (US$ 2.6 billion) generated
* Railway tickets to be made available through post offices and 'mushkil aasaan' mobile vans
* Issue of concessional MST of Rs 25 (US$ 0.51162) for people with monthly income upto Rs 1,500 (US$ 30.69) in unorganised sector, under the 'izzat' scheme
* 'Only ladies' EMU trains to start in Delhi, Chennai and Kolkata
* 'Yuva trains' from rural hinterland to metros at concessional fare
* 12 new point-to-point non-stop 'Duronto' trains
* 57 new trains, extension of 27 trains and increase in frequency of 13 trains proposed
* 50 stations to be developed as world-class stations
* Onboard availability of doctors and infotainment services in long-distance trains being considered
* Physically challenged and aged persons to have more amenities
* Creation of Northeast Rail Development Fund under consideration for timely completion of national projects in Northeast Region
* Railways to come out with white paper on organisational, operational and financial status based on last five years performance and develop Vision-2020 document
Source: http://www.ibef.org
Post a Comment