Question : LOANS TAKEN BY UNION GOVERNMENT

(a) the details of guidelines governing the receipt of loan by the Union Government; and

(b) the details of loan proposed to be availed of during the remaining year 2009-10 and also during 2010-11?

MINISTER OF STATE IN THE (SHRI NAMo NARAIN MEENA) MINISTRY OF FINANCE

(a): For financing the fiscal deficit contained in the Budget Estimates, Government of India raises market loans under the scheme of sale of dated Government securities by auction. These auctions are conducted by the Reserve Bank of India, as debt manager to the Central Government. Since 2002-2003, Central Government has been announcing half yearly indicative Market Borrowing calendar based on its core borrowing requirements. Loans are also raised from multilateral institutions like the World Bank, Asian Development Bank (ADB) etc. and bilateral institutions like Japan International Cooperation Agency (JICA), etc. These external loans are negotiated on a case to case basis.

(b): As per the data available, Market loan (Gross) amounting to Rs. 59,093 crore is proposed to be raised during the remaining part of the financial year 2009-2010. Rs. I 4,332 crore is expected to be raised during the remaining part of the year from external loans. The details of loan proposed to be raised during the year 2010-2011 would be finalized during the presentation of the Budget 2010-2011.