For Quick Alerts
For Daily Alerts

2G spectrum auction, IIP flop show may hit borrowing costs, GDP target

By Religare

The 2G telecom spectrum auction which netted the government just Rs 9,407 crore, as against the target of around Rs 40,000 crore, and the steep fall in industrial output may again force the economists to revise the GDP estimates of India, as even the bond traders fear a jump in the government borrowing.

Rise in government's borrowing, which is very likely considering the 2G auction outcome and muted disinvestment results so far, will be a big blow to finance minister's aim to bring fiscal deficit down to 5.3 per cent in the current fiscal.


Goldman Sachs, JPMorgan, Nomura Securities and ING Vysya Bank have already raised concerns over FM's fiscal deficit target, pushing the bond yields higher. 10-year bonds saw their yields shooting up by 3-5 basis points since RBI's October policy which highlighted central bank's concerns over fiscal deficit.

Experts have been estimating the government to borrow an additional Rs 50,000 crore this fiscal, from the budgeted Rs 5.7 lakh crore.

Story first published: Monday, November 19, 2012, 11:30 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more