Despite the fiscal deficit projected to touch 6.8 per cent of the gross domestic product (GDP) in the year ending March, the government said that it is not planning to privately place gilts with the Reserve Bank of India (RBI) as of now. "At present, notwithstanding the 6.8 per cent fiscal deficit projected in Budget estimate 2009-10, the government does not propose to invoke the above provisions of the Fiscal Responsibility and Budget Management (FRBM) Act for facilitating RBI participation in the primary market for government securities," the finance ministry said in a statement.
The government said that the amount under OMO and the decision to buy or sell gilts in the secondary market are determined by the prevailing liquidity conditions.
The Finance Secretary Ashok Chawla, earlier this week, had said that 50 per cent of the government''s borrowing this year will have to be supported by OMO.
The Budget has pegged the government''s gross market borrowing for the current financial year at a record high of Rs 4.51 lakh crore as against the interim Budget estimate of Rs 3.62 lakh crore.
The government said that the amount under OMO and the decision to buy or sell gilts in the secondary market are determined by the prevailing liquidity conditions.
The Finance Secretary Ashok Chawla, earlier this week, had said that 50 per cent of the government''s borrowing this year will have to be supported by OMO.
The Budget has pegged the government''s gross market borrowing for the current financial year at a record high of Rs 4.51 lakh crore as against the interim Budget estimate of Rs 3.62 lakh crore.
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