Rs 6.55-trn mkt borrowing plan in H2 intact
Despite robust growth in GST and direct tax collections, govt may not reduce borrowing levels: Official
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New Delhi: The government is likely to stick to its borrowing plan for raising Rs6.55 lakh through the sale of bonds in the market during the second half of the current financial year (October to March, 2024).
A senior official said that although revenue collections have been robust with both GST and direct tax collections showing a sharp increase in the current financial year, there is no plan, as of now, to reduce borrowing.
Sources said that the government wants to keep up the momentum of its investments in the big ticket infrastructure projects as this is driving growth and generating employment in the economy. Besides, expenditure on social welfare and healthcare schemes has to be maintained in the run-up to the Lok Sabha polls and assembly elections in some states. A comfortable cash flow would help to make timely disbursements.
Finance Ministry had announced that it would borrow Rs15.43 lakh crore during the 2023-24 financial year of which Rs 8.88 lakh crore has already been raised during the first six months (April-Sept).
The borrowing schedule for the next six months will be announced by the end of September after a meeting between officials of the finance ministry and the RBI on the issue.
