Govt borrowings not to affect private sector: Pranab
05 Mar 2011
Finance Minister Pranab Mukherjee today said the government's market borrowing programme of Rs4.17 lakh crore for 2011-12 will not disrupt credit flow to the private sector.
"I can assure that our borrowing programme, in consultation with RBI, will be in such a manner that there would be no problem for the private sector," Mukherjee told reporters after meeting the Central Board of Directors of the Reserve Bank of India in New Delhi today.
In the wake of prospects of tax buoyancy on the back of robust economic growth, the government's has lowered its market borrowing target to Rs4.17 lakh crore for 2011-12, against Rs4.47 lakh crore estimated in the current fiscal, which was Rs 10,000 crore less than the Budget estimate of Rs.4.57 lakh crore.
The finance minister said that in the current fiscal too the Centre has carried out market borrowings programme without disrupting the flow of capital to the private sector.
The minister, however, said the government is facing serious problems due to the fragile economic recovery in the developed world and the political unrest in the Middle East and North Africa.
''Therefore, fragility of recovery of world economy and uncertainty created because of political unrest in the Middle East and North Africa have serious implications for Indian policy makers,'' he said, adding that volatility in oil prices is further deepening the uncertainty.
The finance minister also said that the problem in some of the Eurozone countries could impact India's exports as India's shipments to Europe are substantial.