The government’s 400 billion rupees programme for the current fiscal year ending in March 2014 will be fully met, Economic Affairs Secretary Arvind Mayaram told Reuters in the sidelines of a conference on Thursday.
India has so far managed to raise only around $230 million by selling stakes in state-owned oil companies, as ministries squabble over the timing of the issues and as the rupee fell against the dollar.
Investors have raised worries the government will fail to meet its fiscal deficit target unless it cuts spending given the decline in revenues.
India to meet borrowing target, mindful of bond yields: Mayaram
The government will stick to its 2013/14 borrowing programme but will calibrate its debt sale plans according to market conditions, Economic Affairs Secretary Arvind Mayaram said on Thursday.
“We are mindful of what the going yields are and therefore calibrate the borrowing accordingly because markets fluctuate. It’s not that they are fixed at one point,” Mayaram told reporters at the sidelines of a financial event.
“We will continue with what our requirements are. But we will calibrate keeping in mind the market conditions on the day in which we go out,” he said.
The government has outlined a total borrowing plan of 5.79 trillion rupees for the full fiscal year, with 2.35 trillion rupees scheduled to be completed during October-March.
Mayaram also said the Reserve Bank of India is expected to switch back to a “more modest” interest rate regime once the country’s investment cycle picks up.
($1 = 62.2460 rupees)