The government had set a borrowing target of Rs 15.43 lakh crore for the current financial year ending March 31 and out of this the government has raised about Rs 14.08 lakh crore or 91 percent. This figure is almost double the borrowing of Rs 7.1 lakh crore taken in 2019-20. Let us know about the complete news.
The government does not want to increase its debt at any cost and that is why in the next financial year also it is planning to borrow the same amount as in the current financial year. Two officials familiar with this entire development said that the government can keep the borrowing target for the next financial year at around Rs 15 to 15.5 lakh crore.
Borrowing target of Rs 15.43 lakh crore
The government had set a borrowing target of Rs 15.43 lakh crore for the current financial year ending March 31 and out of this the government has raised about Rs 14.08 lakh crore or 91 percent. This figure is almost double the borrowing of Rs 7.1 lakh crore taken in 2019-20.
Borrowing increased in Covid
Due to higher spending during the pandemic, government borrowing has almost doubled. Despite it being an election year, the government wants to reduce its fiscal deficit by at least 50 basis points (0.5 per cent) by limiting its expenditure on welfare schemes and subsidies, an official said.
Fiscal deficit will reduce next year
A survey conducted by Reuters also showed that economists expect the government to aim to reduce its fiscal deficit to 5.3 percent of gross domestic product in the next fiscal year from 5.9 percent this year.
