Govt says no need to increase borrowing target for 2009-10

The government today said it does not intend to increase borrowing target for the current fiscal 2009-10, which has been pegged at Rs 4.51 lakh crore.

"There is no intention to increase that number," Finance Secretary Ashok Chawla told reporters ahead of the meeting to decide the borrowing schedule for the second-half of the fiscal.

Chawla further said increasing borrowing limits is not necessary and that is not on the table.

The government has stepped up the market borrowing programme from Rs 3.10 lakh crore in the previous fiscal to Rs 4.51 lakh crore in the current fiscal to combat the impact of the global slowdown on the country's economy.

Giving an idea of the meeting to be held later today, he said, "The meeting will discuss what we have to raise every week, how much we will try to do by December and January, that's what is on the table."

"We need to provide some space for state governments to borrow," he added.

During the first-half, the government had decided to mop up Rs 2.99 lakh crore through bonds.