The Centre has cut its additional market borrowing requirement by more than half for the fiscal year ending in March to Rs 20,000 crore just two weeks ahead of the Union Budget.
"Government has reassessed additional borrowing requirements taking note of revenue receipts and expenditure pattern. Requirement of additional borrowing being reduced from Rs 50000 crore as notified earlier to Rs 20000 crore," said Economics Affairs Secretary S.C. Garg on Twitter on Wednesday.
Government has reassessed additional borrowing requirements taking note of revenue receipts and expenditure pattern. Requirement of additional borrowing being reduced from Rs 50000 crore as notified earlier to Rs 20000 crore.
— Subhash Chandra Garg (@SecretaryDEA) January 17, 2018
The move is being seen as a positive for the government's efforts to stick to the stated fiscal deficit target of 3.2 per cent for 2017-18. Any higher spending and borrowings could mean a death-knell for fiscal consolidation road map, in view of an approaching election year .
Last month, the finance ministry had said that the government is likely to borrow additional Rs 50,000 crore ($7.79 billion) in 2017-18 fiscal year that ends in March.
