Indian government is expected to announce additional borrowing for the rest of the current fiscal in the interim budget due on February 16. Government officials are saying that any additional borrowing which will be needed for the current fiscal will be reflected in numbers in the interim budget.
Earlier, the Deputy Chairman of Planning Commission MS Ahluwalia also said on Tuesday, that the government will need to alter its borrowing programs in wake of the deepening ongoing economic slowdown.
The government had earlier committed to Rs 20,000 crore of additional planned spending along with a 4% across the board cut in excise duty in a fiscal package meant to boost consumption in the economy. With increasing expenditure and declining tax revenue, fiscal deficit of the government is expected to shoot up to over around 5% of gross domestic product in the current fiscal.