INR rescue measures to take toll on India's fiscal deficit

The measures taken by the government to save the rupee is likely to throw its fiscal out of whack. North Block sources say this may impact the fiscal deficit by over Rs 18,000 crore. CNBC-TV18‘s

August 21, 2013 / 11:12 IST

The measures taken by the government to save the rupee is likely to throw its fiscal out of whack. As the RBI continues to sell short-term treasury bonds at near double-digit yields, the government's borrowing cost continues to rise. North Block sources say this may impact the fiscal deficit by over Rs 18,000 crore. CNBC-TV18's Aakanksha Sethi.

Also read: Further weakness in rupee is here to stay: HSBC

They also fear that cost of borrowing on long-term securities may go up by Rs 11,000 crore. The RBI has been issuing cash management bills as a temporary measure and their interest cost will also be borne by the government.

first published: Aug 20, 2013 04:46 pm

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