The Modi government will take a loan of Rs 5.03 lakh crore in the second half of the current financial year 2021-22 to compensate for the shortfall in revenue. Giving this information, the Finance Ministry has said that the government will take this loan to revive the economy affected by the epidemic.
In the first half of the current financial year, the government has raised Rs 7.02 lakh crore by issuing bonds. The ministry said, “The general budget for the current financial year has estimated a gross loan of Rs 12.05 lakh crore. Out of this, 60 percent i.e. Rs 7.24 lakh crore debt was planned to be raised in the first half.
Took a loan of Rs 7.02 lakh crore in the first half
The statement said that a loan of Rs 7.02 lakh crore has been taken in the first half. Now the government plans to take the remaining loan of Rs 5.03 lakh crore in the second half. The credit estimate for the second half also includes the need to release the balance amount to the states under the back-to-back credit facility against GST compensation.
75,000 crore was released in lieu of GST compensation
During the first half, the Center had released Rs 75,000 crore to states and union territories under the credit facility provided against GST compensation. Out of Rs 1.58 lakh crore, the remaining Rs 83,000 crore will be released to the states and union territories in the second half starting October 1. The loan will be in the form of securities of 2, 5, 10, 14, 30 and 40 years and floating rate bonds (tenures 7 to 8 years and 13 years), the statement said. This loan will be taken in 21 weeks. 24,000 or Rs 23,000 crore will be raised per week.
The share of debt under different maturities will be in the form of two years – 4 per cent, five years – 11.9 per cent, 10 years – 28.4 per cent, 14 years – 17.9 per cent, 30 years – 13.9 per cent and 40 years – 15.1 per cent. Debt under floating rate bonds will be at 8.8 per cent. Apart from 13 years, the government will issue another floating rate bond of 7-8 years.
Government’s gross debt estimated to be Rs 12.05 lakh crore
According to the budget 2021-22, the gross debt of the government in the current financial year is estimated to be Rs 12.05 lakh crore. At the same time, the net debt is estimated to be Rs 9.37 lakh crore. Gross debt also includes the repayment of old debt. The repayment of the old loan is expected to be Rs 2.80 lakh crore in the next financial year.
The government finances the fiscal deficit by raising funds from the market through dated securities and treasury bills. In the budget, the fiscal deficit has been estimated at 6.8 percent in the current financial year. In the last financial year, the fiscal deficit was estimated to be 9.5 percent of the gross domestic product (GDP), while the actual fiscal deficit was 9.3 percent.
