The economic affairs secretary has announced an increase in government borrowing for the second half of the fiscal (FY12) by Rs 52800 crore. This comes amidst worries of economic slowdown and a depleting treasury that the nation now faces. Ashok Jha, former finance secretary and Ajay Shah, senior fellow at NIPFP, in an interview to CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, shared their views on the government borrowing programme.
There is a fear that schemes such as National Rural Employment Guarantee, which have boosted consumer demand significantly, will also have to see substantial cuts due to the borrowing programme. Jha said that government cannot cut back on National Rural Employment Guarantee Act (NREGA) because it covers the entire country and it is a demand-driven scheme.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
