In the interim Budget for FY25, the government has pegged the gross and net market borrowing at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. Most experts had pegged the gross market borrowing to be a little over Rs 15 lakh crore. The planned borrowing for FY25 is less than that in FY24. For FY24, the government had pegged gross market borrowing at Rs 15.43 lakh crore.
Union Finance Minister Nirmala Sitharaman laid emphasis on fiscal responsibility, thus giving boost to the debt market, maintained her stance on infra development, inclusive development, green ecosystem and research & innovation.
“While we did not expect any major announcements in this budget, the lower fiscal deficit coupled with higher capex outlay will aid continued momentum of India growth story. Both of these moves are enablers for a pickup in the private capex cycle,” says Ashish Gupta, CIO, Axis Mutual Fund
According to Christian de Guzman of Moody s, while the interim Budget firmly conveyed India s commitment to its fiscal consolidation, the government s ability to meet its targets could be restricted due to a variety of factors