LONDON (Reuters) - British finance minister Alistair Darling said yesterday the government would meet its increased borrowing commitments after the bulky economic lifeline package announced in Monday's pre-budget report.

Markets have grown increasingly concerned in recent weeks about the prospect of a deluge of bonds as the Labour government borrows more to support the economy, which is sliding into its first recession since the early 1990s. Darling announced a £20 billion ($30 billion) stimulus, forecasting borrowing would rise to £118 billion next year. The Debt Management Office raised its gilt issuance to a record £146.4 billion for 2008/9, weighing on gilt prices.

"I'm confident we have made the right judgement, and I'm confident the government can meet all its objectives and obligations," he told Reuters after being asked if markets could absorb the additional bonds caused by his expanded borrowing.

Inflation fell more sharply than expected in October, triggering many economists to highlight a risk of deflation.