The government will borrow 4.888 trillion rupees in the first half of 2020-21 from April 1 to consolidate resources in a war it is waging to contain the economic fallout from the coronavirus pandemic, DEA secretary Atanu Chakraborty said on Tuesday.
The Minister of Finance, Nirmala Sitharaman, had in his budget for 2020-2021 a gross pegging of gross loans in the new financial year to 7.8 trillion rupees, or more than 7.1 trillion rupees estimated in the financial year Classes.
Gross borrowing includes repayments of previous loans.
Presenting the budget for 2020-2021, Sitharaman had declared that the net borrowing on the market for the year 2019-2020 would be 4.99 trillion rupees and for the year 2020-21 it would be 5.36 trillion of rupees.
“Much of the borrowing for the 2020-2021 fiscal year would go to government capital spending, which has been increased by more than 21%.
“As I mentioned earlier, about Rs 22,000 crore has been allocated to equity to finance certain specified infrastructure finance companies, which would leverage it multiple times and provide much needed long-term finance to the sector infrastructures. This should stimulate growth spurts in the economy, “she said on February 1.
The government raises funds in the market to finance its budget deficit with dated securities and treasury bills.
The budget fixed the budget deficit at 3.5% for the next fiscal year, against 3.8% of GDP for the current fiscal year.