Home Business Govt lowers additional borrowings to Rs. 20K crore in FY18

Govt lowers additional borrowings to Rs. 20K crore in FY18

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(G.N.S) Dt. 17

New Delhi

The government in the 2017-18 budget had estimated borrowings at Rs. 43,000 crore through dated securities in current fiscal.

The government on Wednesday lowered the additional borrowing requirement for the current fiscal to Rs. 20,000 crore from Rs. 50,000 crore estimated earlier.

“Government has reassessed the additional borrowing requirements taking note of revenue receipts and expenditure pattern. Requirement of additional borrowing being reduced from ₹ 50,000 crore as notified earlier to ₹20,000 crore,” Economic Affairs Secretary Subhash Chandra Garg has tweeted.

Last month, after consultation with RBI the government had said that it would make an additional borrowing of ₹50,000 crore this fiscal through dated securities. However, there will be no change in the net borrowings as envisaged in the Budget for 2017-18.

The government in the 2017-18 budget had estimated borrowings at ₹ 43,000 crore through dated securities in current fiscal.

A decline in revenue collections from the Goods and Services Tax (GST), and lower non-tax revenue have led to worry in meeting the fiscal deficit target.

The government has budgeted gross and net market borrowings at ₹ 5.8 lakh crore and ₹ 4.23 lakh crore, respectively in 2017-18.

As per the latest figure, in November 2017 the fiscal deficit target had breached budget target and touched 112 per cent of the budget estimate for 2017-18 mainly due to lower GST collections and higher expenditure.

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