Drop in Government borrowing from RBI

By Our Corporate Reporter

CHENNAI, AUG. 6. The borrowings of the Central Government have declined again by Rs. 4,334 crores to Rs. 5.687 crores in the week ended July 28 from Rs. 10,021 crores and those of State governments by Rs. 303 crores to Rs. 3,784 crores from Rs. 4,087 crores in the previous week. Loans and advances to scheduled commercial banks have also dropped by Rs. 6,170 crores to Rs. 5,847 crores from Rs. 12,017 crores.

Reserve money has declined by Rs. 11,225 crores in the week ended July 28 and stood at Rs. 2,69,055 crores.

The drop in the current financial year so far has been Rs. 11,258 crores against Rs. 3,328 crores last year. On a year-to-year basis, the growth was Rs. 13,038 crores (5.1 per cent).

The net RBI credit to Government was lower by Rs. 1,241 crores and stood at Rs. 1,61,051 crores. The increase in the net RBI credit to Government in the current financial year so far is Rs. 12,788 crores (8.6 per cent) against Rs. 3,724 crores (2.4 per cent) earlier. Foreign currency assets have declined by $89 million in the week ended July 28 to $33.24 billion. SDR (special drawing rights) holdings have risen marginally to $8 million. Gold holdings were unchanged at $2.95 billion. Total reserves stood at $36.20 billion on July 28.

The drop in FCAs from March this year was $1.82 billion and in gold holdings by $26 million, while SDR holdings were higher by $4 million. On a year-to-year basis the growth in FCAs was $2.48 billion and gold holdings $242 million.

Send this article to Friends by E-Mail

Section  : Business
Previous : Downtrend on Lyons Range
Next     : Clarifying ticklish exchange rate issues