The budget has projected the fiscal deficit for the next fiscal at 6.8%, which is lower than the 9.5% of GDP in the current fiscal.
The finance ministry on Monday said the government will borrow Rs 5.03 lakh crore in the second half of the current fiscal to meet the revenue gap to revive the pandemic-hit economy.
During the first half, the government has raised Rs 7.02 lakh crore by issuing bonds, the ministry said in a statement.
“Out of the estimated ₹12.05 lakh crore of gross market borrowing for FY 2021-22 in the Union Budget, ₹7.24 lakh crore (60%) was planned to be borrowed in the first half (H1).
“The effective borrowing in H1 of FY 2021-22 was Rs 7.02 lakh crore. The government is now planning to borrow the remaining ₹ 5.03 lakh crore in the second half (H2) of FY 2021-22,” it said.
The H2 projection also factors into the requirements for states to release the balance on account of back-to-back credit facility in lieu of GST compensation during the year.
As per the budget for 2021-22, the government’s gross borrowing was estimated at ₹12.05 lakh crore, while the net borrowing was pegged at ₹9.37 lakh crore in the financial year beginning April 1.
Gross borrowing includes the repayment of past loans. The repayment of past loans in the next financial year is pegged at ₹ 2.80 lakh crore.
The government raises money from the market to meet its fiscal deficit through dated securities and treasury bills.
The budget has projected the fiscal deficit for the next fiscal at 6.8%, which is lower than the 9.5% of GDP in the current fiscal.
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