Finmin, RBI to meet tomorrow on govt borrowing

The finance ministry and the Reserve Bank of India (RBI) are meeting tomorrow to decide on the government's borrowing requirement, which is more this year due to the impact of financial crisis and stimulus measures taken by the government.

"We are having a meeting of cash and debt management team tomorrow. The deputy governor (of RBI Shyamala Gopinath) is coming. After that we will finalise whatever is the amount, whatever are the modalities," Economic Affairs Secretary Ashok Chawla told reporters here.

"This year because of stimulus, because of downturn, the requirement has been more. Therefore, whatever is the requirement of the government, it will have to be met through borrowing," he added.

Chawla said that the borrowing route will be decided in the most appropriate manner after consultation with the government and RBI who raises the debt.

The apex bank has rightly said that it will handle the government's borrowing requirement in the best and market friendly mode, he added.