NEW DELHI: The central government said Wednesday that it will borrow ₹4.34 trillion in the second half of the fiscal year, sticking to its ₹Debt plan of 12 trillion for the whole year as decided in May.
The Secretary of Economic Affairs, Tarun Bajaj, in a briefing, said that the debt target was raised to ₹12 trillion in May of the originally budgeted figure of ₹7.6 trillion taking into account the economic consequences of the covid-19 pandemic and the decision was to stick to this according to current estimates.
Bajaj said of the estimate ₹12 trillion loans for the whole year, the government has already borrowed ₹Rs 7.66 crore lakh, which is 63.8% of the target.
With the opening of the economy starting in June, there has been an improvement in income and the government has prioritized some expenses. “We have decided to continue with the same figure of ₹12 billion for the total year. Which means our loan per second would be ₹Rs 4.34 crore or 36.1% of the 12 trillion that will be borrowed for the entire year, “Bajaj added.
The government clearly does not want to displace the private sector that may need to borrow as they continue to recover from the impact of COVID-19 in the third and fourth quarters.
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