Rise in small savings likely to ease borrowing pressure

An increase in small savings collections is likely to reduce pressure of government borrowing via dated securities and treasury bills in the current fiscal year, the economic affairs secretary told CNBC-TV18 news channel on Monday.

Earlier this month, the government raised interest rates on small savings investment schemes through post offices by up to 0.5%. "I am sure that pressure on the markets for dated securities as well as tbills will go down," R. Gopalan said, adding the government would try to find ways and means to bring down the market borrowings close to the level of last fiscal year. The government aims to borrow Rs 570,000 crore from the market in the 2012-13 fiscal year through dated securities, compared with Rs 510,000 crore in the previous fiscal year.