Centre to borrow Rs 2.88 lakh crore during April-September 2018 period
This is much lower than the Rs 3.72 lakh crore the government borrowed in the corresponding period in 2017.
The Indian government will borrow Rs 2.88 lakh crore during the April-September 2018 period, much lesser than the Rs 3.72 lakh crore it borrowed from April to September 2017, PTI reported.
The planned half-yearly borrowing for 2018-’19 is 47.56% of the total budgeted borrowing for the upcoming financial year. This 47.56% is lower than the average of 60-65% in the last five years. Finance Minister Arun Jaitley had announced a borrowing target of Rs 6.06 lakh crore in the Budget.
Economic Affairs Secretary Subhash Chandra Garg said the borrowing would be used to finance India’s projected fiscal deficit of 3.3% of its Gross Domestic Product for 2018-’19. “We are absolutely confident that we will be able to meet all expenditures without going into overdraft,” Garg told reporters in New Delhi.
In 2017-’18, the fiscal deficit had shot to 3.5% of GDP, as the government exceeded its borrowing target in November itself.
Garg added that the government would also withdraw up to Rs one lakh crore – Rs 25,000 crore more than in 2017-’18 – from the National Small Savings Fund to fund the fiscal deficit. He added that government securities of one to four years’ duration would also be introduced.