The government will borrow Rs lakh.24 lakh crore in the first half of 2021-22, so as to meet the resources, the economy may be harmed due to the fiscal epidemic.
According to the budget of 2021-22, the government’s gross borrowings in the financial year commencing from April 1 was .05 12.05 lakh crore.
“In the budget, we announced that there would be a gross borrowing of ₹ 12.05 lakh crore and a net borrowing of ₹ 9.37 lakh crore. In the first half of 2021-22, we will borrow ₹ 7.24 lakh crore, which is 60.06. Gross. % Of Jari, ”said Economic Affairs Secretary Tarun Bajaj.
Gross borrowing involves repayment of previous debts. Repayment of previous loans is estimated at ₹ 2.80 lakh crore in the next financial year.
“Gross borrowings from the market will be around ₹ 12 lakh crore for the next year. We plan to continue our path of fiscal consolidation, and intend to reach a level of fiscal deficit below 4.5% of GDP by 2025-26. There is a steady decline in this period, “Finance Minister Nirmala Sitharaman said while presenting the budget 2021-22 last month.
The government raises funds from the market to fund its fiscal deficit through dated securities and treasury bills.
In the budget, the fiscal deficit has come down to 6.8% in the next fiscal from 9.5% of GDP in the current financial year.
He said, “In RE 2020-21 the fiscal deficit is pegged at 9.5% of GDP. We have funded it through government borrowing, multilateral lending, small savings funds and short-term lending.”
Mr. Bajaj said that the fiscal deficit for the current financial year would be around the revised estimate announced in the budget.
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