The H2 projection also factors into the requirements for states to release the balance on account of back-to-back credit facility in lieu of GST compensation during the year.
The finance ministry on Monday said the government will borrow Rs 5.03 lakh crore in the second half of the current fiscal to meet the revenue gap to revive the pandemic-hit economy.
During the first half, the government has raised Rs 7.02 lakh crore by issuing bonds, the ministry said in a statement.
“Out of the estimated gross market borrowing of Rs 12.05 lakh crore for the financial year 2021-22 in the Union Budget, Rs 7.24 lakh crore (60 per cent) was planned to be borrowed in the first half (H1).
“The effective borrowing in the first half of FY 2021-22 was Rs 7.02 lakh crore. The government is now planning to borrow the remaining Rs 5.03 lakh crore in the second half (H2) of FY 2021-22,” it said.
The H2 projection also factors into the requirements for states to release the balance on account of back-to-back credit facility in lieu of GST compensation during the year.
As per the budget for 2021-22, the government’s gross borrowings stood at Rs 12.05 lakh crore, while the net borrowing was pegged at Rs 9.37 lakh crore in the financial year beginning April 1.
Gross borrowing includes the repayment of past loans. The repayment of past loans in the next financial year is pegged at Rs 2.80 lakh crore.
The government raises money from the market to meet its fiscal deficit through dated securities and treasury bills. The budget has projected the fiscal deficit for the next fiscal at 6.8 per cent, which is less than 9.5 per cent of GDP in the current fiscal.
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