Union Budget 2023: Govt to borrow record Rs 15.4 lakh crore in FY24 to bridge revenue gap

NEW DELHI, (PTI): The government plans to borrow a record Rs 15.4 lakh crore from dated securities in FY24 to meet its expenditure requirement to prop up the economy.

This is higher than the total borrowing of Rs 14.21 lakh crore for the current financial year ending March 31, 2023.

Finance Minister Nirmala Sitharaman while presenting the Budget on Wednesday said the net market borrowings from dated securities are estimated at Rs 11.8 lakh crore to finance the fiscal deficit in 2023-24. ”The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 15.4 lakh crore,” she said. The government has raised Rs 12.93 lakh crore till January 27, which is 91 per cent of the overall borrowing target of Rs 14.21 lakh crore estimated for 2022-23.

The indebtedness of the Centre and state governments together is equal to 83 per cent of the annual gross domestic product (GDP).

The finance minister retained the fiscal deficit target at 6.4 per cent despite an increase in the subsidy bill.

”Coming to 2023-24, the total receipts other than borrowings and the total expenditure are estimated at Rs 27.2 lakh crore and Rs 45 lakh crore, respectively. The net tax receipts are estimated at Rs 23.3 lakh crore,” she said.

She pegged the fiscal deficit at 5.9 per cent of GDP for FY24. ”In my Budget Speech for 2021-22, I had announced that we plan to continue the path of fiscal consolidation, reaching a fiscal deficit below 4.5 per cent by 2025-26 with a fairly steady decline over the period. We have adhered to this path, and I reiterate my intention to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26,” she said.

Sitharaman had pegged gross market borrowing through dated securities for 2022-23 at Rs 14,95,000 crore.

However, the government in September 2022 decided to cut the gross borrowing to Rs 14.21 lakh crore during FY23. The gross borrowing for 2021-22 was Rs 12,05,500 crore.

With regard to the net borrowing, the government estimated a record Rs 11.6 lakh crore raising from the market in 2022-23.

This was nearly Rs 2 lakh crore higher than the current year’s Budget estimate of Rs 9.7 lakh crore.

The total market borrowings of the government for 2022-23 are estimated at Rs 11,58,719 crore, according to the previous Budget document.

The Revised Estimates for the same for 2021-22 are Rs 8,75,771 crore against the Budget Estimates of Rs 9,67,708 crore. (PTI)