NEW DELHI: The government will stick to its borrowing target announced in the 2021-22 Union budget and will borrow Rs 7.24 lakh crore or 60% of the annual target in the first half of the year. fiscal year 2021-22. According to the budget, the gross government borrowing was estimated at Rs 12.05 lakh crore in the fiscal year starting April 1.
“In the budget, we announced that there would be a gross borrowing of Rs 12.05 lakh crore and a net borrowing of Rs 9.37 lakh crore. In the first half of 2021-2022, we would borrow 7.24 lakh crore of rupees, ”said Economic Affairs Secretary Tarun Bajaj. In the fiscal year ended March 31, 2021, the government borrowed a record Rs 13.71 lakh crore, 76% more than it budgeted, mainly to raise the resources needed to revive the economy affected by the coronavirus pandemic.
However, the finance ministry canceled a central government bond auction valued at Rs 20,000 crore scheduled for March 26, which was due to be the last of the fiscal year due to better revenues. Gross borrowings include repayments of past borrowings. The repayment of past loans during the next financial year has been set at Rs 2.8 lakh crore.
“The gross borrowing in the market for next year would be around Rs 12 lakh crore. We plan to continue on the path of fiscal consolidation and intend to achieve a level of budget deficit of less than 4.5% of GDP by 2025-2026 with a fairly steady decline over the period ”, he added. said Finance Minister Nirmala Sitharaman during the budget presentation.
The central government budget deficit at the end of February stood at 76 percent of the revised estimate. The deficit stood at Rs 14.05 lakh crore.