Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24
| Photo Credit: PTI
The government plans to borrow a record ₹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 ₹14.21 lakh crore for the current financial year ending March 31, 2023.
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Finance Minister Nirmala Sitharaman while presenting the Budget on February 1 said the net market borrowings from dated securities are estimated at ₹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 ₹15.4 lakh crore,” she said.
The government has raised ₹12.93 lakh crore till January 27, which is 91% of the overall borrowing target of ₹14.21 lakh crore estimated for 2022-23.
The indebtedness of the Centre and State governments together is equal to 83% of the annual gross domestic product (GDP).
The Finance Minister retained the fiscal deficit target at 6.4% despite an increase in the subsidy bill.
“Coming to 2023-24, the total receipts other than borrowings and the total expenditure are estimated at ₹27.2 lakh crore and ₹45 lakh crore, respectively. The net tax receipts are estimated at ₹23.3 lakh crore,” she said.
She pegged the fiscal deficit at 5.9% 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% 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% of GDP by 2025-26,” she said.
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Ms. Sitharaman had pegged gross market borrowing through dated securities for 2022-23 at ₹14,95,000 crore.
However, the government in September 2022 decided to cut the gross borrowing to ₹14.21 lakh crore during FY23. The gross borrowing for 2021-22 was ₹12,05,500 crore.
With regard to the net borrowing, the government estimated a record ₹11.6 lakh crore raising from the market in 2022-23.
This was nearly ₹2 lakh crore higher than the current year’s Budget estimate of ₹9.7 lakh crore.
The total market borrowings of the government for 2022-23 are estimated at ₹11,58,719 crore, according to the previous Budget document.
The revised estimates for the same for 2021-22 are ₹8,75,771 crore against the Budget estimates of ₹9,67,708 crore.
