The Reserve Bank of India (RBI) said on Monday that the government has decided to cancel its Rs 20,000 crore earmarked for March 26 to review the cash balance situation.
This means that the government will take ₹ 20,000 crore less than its target of ₹ 12.8 lakh crore announced in the budget on 1 February. “On reviewing the status of the cash balance, the Government of India has decided to cancel the aforementioned scheduled auction,” the RBI said in a statement.
Gross borrowing for the current financial year increased by 64% from the budget estimate of 7.8 lakh crore to ₹ 12.8 lakh crore.
He said, ‘For the next year (2021-22), the gross borrowing from the market will be around Rs 12 lakh crore. Finance Minister Nirmala Sitharaman had announced the budget in 2021, stating that we intend to continue our path of fiscal consolidation and bring the fiscal deficit level from 4.5 percent of GDP to 2025-2026 by 2025-2026. -22.
The government raises funds from the market to fund its fiscal deficit through dated securities and treasury bills.
As a result, net lending will come to Rs 9.24 lakh crore for the next financial year, while for the current financial year it is estimated to be Rs 10.52 lakh crore during 2020-21.
In the budget, the fiscal deficit has been reduced from 6.8 percent to 9.5 percent of GDP for the next financial year. The fiscal deficit is estimated at 9.5 percent of GDP in RE 2020-21. PTI DP NKD MKJ
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