The Reserve Bank of India on Tuesday said the market borrowing programme of the Central government has so far remained consistent with the projections set out in the Union Budget.

The revenue deficit and gross fiscal deficit of the Centre during April-August 2005 accounted for about 78 per cent and 57.1 per cent of the budget estimates for 2005-06 as compared with 82.6 per cent and 38.2 per cent respectively in the corresponding period a year earlier, it said.

Credit Policy: Complete Coverage

RBI said the market borrowing programme of the Centre as also the states, envisaged for 2005-06, was higher than that in the previous year.

"Underlying liquidity conditions and shifts in banks' portfolio preferences in favour of the credit, has, however entailed some hardening of yields," RBI said in its mid-term review of the annual policy in Mumbai.

It also mentioned that continuous huge borrowings from the market by the Centre and the states pose concerns for the efficient conduct of debt management as well as for monetary operations, it said.