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Fixed Income And Currency Market
30 Jan 2022
RBI to have a difficult task of managing inflation and borrowing
Given expected growth of 13% in fiscal 2022-23 and a fiscal deficit pegged at 6% of GDP, net government borrowing is likely to be at around Rs 7 trillion. Coupled with state government borrowing the supply will still be heavy and RBI will be hard pressed to manage the borrowing if inflation continues to rise.
Arjun Parthasarathy
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