Govt Borrowing News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Budget Announcements: The Indian government plans to borrow 14.13 trillion rupees ($170.36 billion) in the next fiscal year, lower than economists' estimates, according to Finance Minister Nirmala Sitharaman. Net borrowings are expected to remain largely unchanged from the current fiscal year, at 11.75 trillion rupees. The funds will be used to finance a fiscal deficit of 5.1% of GDP, with the government also conducting switch auctions worth 1 trillion rupees. Additionally, 4.66 trillion rupees will be raised through India's small savings fund to cover the budget gap.

According to sources, the government sees no reason to lower its plan to borrow Rs 6.55 lakh in October 2023-March 2024. Any reduction in borrowing could be done at a later date once there is certainty about revenues.

According to economists, Faster tax devolution is likely to encourage states to continue on the path of capital spending.

Since last fiscal year the federal government has been adjusting for liabilities that are not directly on the balance sheets of states but would eventually have to be serviced by the states.

The report released by the finance ministry said public debt accounted for 89% of the total outstanding liabilities in December compared to 89.1% at the end of September