Govt may mobilise Rs 70,000 cr from issuance of sovereign bonds abroad: Garg

Terming the proposed issuance of sovereign bonds in overseas markets as the "boldest announcement" of the Budget, Finance Secretary Subhash Chandra Garg Friday indicated that about Rs 70,000 crore could be mobilised through this route.

He said diversification of government resource mobilisation is the only way of leaving more funds for the private sector.

"That's why this is the boldest announcement which has been made, that is opening up of sovereign bonds for overseas market," he said at a CII event here.

Finance Minister Nirmala Sitharaman in Budget 2019-20 announced that the government would start raising a part of its gross borrowing programme from external markets in foreign currencies.

She added that India's sovereign external debt-to-GDP level is among the lowest globally at less than 5 per cent.

"We will raise a part of our borrowing abroad now in foreign currency. It will leave some more domestic saving for the private sector. We raise Rs 7 lakh crore as borrowing. We take it all from the domestic market and so much less is left for the private sector. If I raise about 10 per cent of that, additional Rs 70,000 crore would be left for the private sector," Garg said.

This will increase supply of money in the domestic market, he said, adding that all of these measures are part of the larger story of opening of the Indian private sector and giving it more investible resources.

"You would find lot of statements in the Budget that the government would now be going more and more in PPP route in sectors which have been practically untouched," he said.

He further said that Budget sets out a clear goal for the next five years, that is to get to USD 5 trillion economy with lot of quality and equity.

Second thing that has not got attention is opening up of the Indian economy to private sector and the world, he added.

On sticking to the fiscal deficit target, he said, "Fiscal disciple is an article of faith and we will stay the course."