Govt To Borrow Rs 46,000 Cr

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The government will borrow an additional Rs 46,000 crore from the market in four tranches from February 20 to March 20 to finance extra expenditure incurred to stimulate the slowing economy. The government, however, assured that the borrowings, to be carried out through dated securities, will not result in any liquidity crisis. &quot;We had discussions with the Reserve Bank. Borrowing (extra) between February 20 and March 20 is going to be Rs 46,000 crore&quot;, Economic Affairs Secretary Ashok Chawla told reporters after meeting RBI Deputy Governor Shyamala Gopinath. The government will be borrowing Rs 46,000 crore through dated securities in four tranches, he added. Meanwhile at a separate function, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, &quot;There will be no liquidity crisis (because of extra market borrowings).&quot; Ahluwalia said any deficit has to be met by borrowing and if stimulus is needed borrowing is a must. It has to be driven by borrowing, he said adding there will be no difficulty in accommodating the government borrowings. &quot;You can only have a next stimulus if you have a fiscal deficit. Our view in the Planning Commission is consistent that the best way of doing stimulus is well designed expansion in expenditure,&quot; he said. The RBI, Gopinath said, &quot;will ensure that it (borrowings) is carried out in a non-disruptive manner&quot;. The apex bank has already come out with an indicative calendar for government borrowing of Rs 70,000 crore more than what was given in the budget. The government, Chawla told reporters yesterday, has provided a stimulus of Rs 1,50,000 crore by way of excess expenditure and about Rs 50,000 crore through tax concessions to industry. &quot;This year because of stimulus, because of downturn, the (borrowing) requirement has been more. Therefore, whatever is the requirement of the government ... Will have to be met through borrowing,&quot; he had said. At a time when revenue collections are not buoyant, the government through two supplementary demands for grants has raised public expenditure 20 per cent over and above what had been earmarked in the budget for 2008-09, and slashed excise duty by 4 per cent. (PTI)