India Said to Plan 250 Billion Rupees Additional Borrowing
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India’s government may consider borrowing an extra 250 billion rupees ($4.6 billion) after setting a higher budget deficit target for the year ending March 31, said two Finance Ministry officials with direct knowledge of the matter.
The ministry will decide by the end of January or early February if it will raise the additional amount by selling government securities or treasury bills, the two people said, asking not to be identified as they aren’t authorized to speak on the subject. Finance Minister Palaniappan Chidambaram has vowed to cap the deficit at 5.3 percent of gross domestic product for the 12 months through March, versus an earlier target of 5.1 percent proposed by his predecessor.