Question : BORROWING OF GOVERNMENT

(a) whether the Government has decided to take Rs.83,000 crore in the first half of the year itself out of the total borrowing to be made during the year 2005-06;

(b) if so, the details thereof; and

(c) whether assessment in regard to the impact of receiving such a major amount of loan from the domestic market in the beginning of the year itself on the economy of the country has been made by the Government;

(d) if so, the facts in this regard; and

(e) the reasons behind taking aforesaid decision?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANICKAM)

(a) and (b): Government and Reserve Bank of India have announced an indicative Calendar for issue of Marketable Dated Securities amounting to Rs. 83,000 crore in eleven tranches during the first six months of the year 2005-06.

(c) and (d): Government is of the view that this borrowing of this amount will not have any adverse consequences for the market. The calendar is, in any case, subject to variations depending on market conditions and other relevant factors.

(e): The indicative Calendar is based on an estimate of requirement of funds, taking into account, likely expenditure, including repayment of debt, and non debt receipts.