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Govt may borrow Rs 5.8-6 trillion in FY15: Standard Chartered

The global financial services major also said that Finance Minister P Chidambaram in his interim Budget speech on February 17 could budget for a higher drawdown of cash balance in fiscal 2015 than in fiscal 2014, given the amount of redemptions.

Subhadip Sircar   New Delhi     Last Updated: February 13, 2014  | 14:07 IST
Govt may borrow Rs 5.8-6 trillion in FY15, says StanChart
(PHOTO: Associated Press)

Standard Chartered Bank estimates the government will on February 17 announce gross borrowing for 2014/15 of Rs 5.8-6 trillion, based on the government's fiscal deficit target of 4.2 per cent of GDP.

Finance Minister P. Chidambaram is due to unveil the interim budget on Monday, ahead of general elections.

StanChart adds the government could budget for a higher drawdown of cash balance in fiscal 2015 than in fiscal 2014, given the amount of redemptions.

The bank also estimates the government will end 2013/14 with a cash surplus of about Rs 1 trillion, despite the cancellation of the Rs 150-billion auction, as national small savings fund collection had exceeded the budgeted amount by Rs 361 billion as of end-December 2013.

(Reuters)

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