3G bounty to help govt cut borrowings: Montek

The Rs 67,700-crore (Rs 677 billion) revenue boost from the auction of 3G spectrum licences will help the government reduce its borrowings in the current fiscal, Planning Commission deputy chairman Montek Singh Ahluwalia said.

"The government's normal borrowing programme may be less because of high unexpected revenue from the 3G auctions. This unexpected and increased revenue is a positive development," he said.

The government has a gross borrowing target of Rs 4.57 lakh crore in 2010-11 as against Rs 4.51 lakh crore in the last fiscal.

Out of this, the net borrowing for FY11 would be Rs 3.45 lakh crore. The government had projected a revenue Rs 35,000 crore (Rs 350 billion) from the spectrum auctions 3G and broadband wireless access, which is yet to kick off.

The auction for 3G mobile telephony ended on Thursday after 34 days of auction with leading players RCom, Bharti and Aircel bagging 13 circles each, and leaving the government with a Rs 67,710-crore revenue windfall.