'Govt to borrow more than planned in interim budget'
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Government borrowing in the first half of the current fiscal is expected to be higher than Rs 2,41,000 crore projected in the interim budget. "Central Government borrowing through dated securities was pegged at Rs 2,41,000 crore for the first ha lf of 2009-10.The actual borrowing is likely to turn out to be higher than this figure," Centre for Monitoring Indian Economy (CMIE) here said in its monthly review for June.
Higher borrowing meant widening of fiscal deficit, which is already high this year because of the stimulus packages announced by the Government to prop up growth in the face of global recession.
Higher expenditure than planned but lower revenue receipts than expected in the interim budget were the reasons cited by CMIE for increased Government's borrowings.
"In April 2009 itself, Central Government expenditure rose by 43 per cent to Rs 66,217 crore, while tax receipts were down by 17 per cent to Rs 19,869 crore. Lower than expected tax receipts may prompt the Government to borrow more from the market," CMIE said.
Excise collections in April also were down by 52.6 per cent, or Rs 4,670 crore, which according to CMIE, could be because of the excise relief given in the stimulus packages of the Central Government.
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