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Government to borrow over 2 lakh crore in second half of 2017-18

To achieve its fiscal deficit target of 3.2 percent of the Gross Domestic Product (GDP), the government is planning to borrow Rs 2.08 lakh crore from the market. The funds will be borrowed in the second half of 2017-18. Borrowed funds are often used to reduce the fiscal deficit in the existing financial year. In this respect, gross borrowing of Rs 5.8 lakh crore and net borrowing at Rs 4.25 lakh crore has been provided in the budget. In the first half, the government has already borrowed Rs 3.72 lakh crore. Now in the second half, it will borrow another 2.08 lakh crore. The second half will begin from October 1 2017 and end on March 31, 2018. The information regarding the borrowings was provided by Economic Affairs Secretary Subhash Chandra Garg.

However, if we look at the net borrowings for the October-March period, it is Rs 1.92 lakh crore. Garg clarified that even though a stimulus package is being planned by the government with the aim of reviving the economy, the government has decided to stick to its original plan, at least in terms of achieving the predestined fiscal deficit target of 3.2 percent. Garg said that in case additional funds are required, a decision will be made in December and not before that. But Garg also clarified that at present, there does not seem any need for additional funds.

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