3G revenues to cut fiscal deficit: Cabinet Secy

NEW DELHI: The Rs.67,718.95 crore ($15 billion) generated from the just- concluded auction of spectrum for third generation (3G) telephony will bring down the fiscal deficit and cut borrowings of the Indian government, cabinet secretary K.M. Chandrasekhar said here Monday.

"These funds (generated from 3G auction) will help us," Chandrasekhar told reporters here.

The amount can prune the government's fiscal deficit, pegged at Rs.381,408 crore (around $85 billion) for this year, by nearly one percentage point and lower the estimated government borrowings from Rs.457,000 crore to Rs.422,000 crore.

The government had hoped to collect Rs.35,000 crore ($7.75 billion) from the auctions for both the 3G services and broadband. But the 3G auction alone fetched the exchequer Rs.67,718.95 crore ($15 billion).

The auction for broadband wireless access (BWA) spectrum kicked off Monday, with the potential to fetch another $7.5 billion to the government.