Govt to borrow Rs 5.03 lakh cr

New Delhi, September 27

The Finance Ministry on Monday said the government will borrow Rs 5.03 lakh crore in the second half of the current fiscal to fund the revenue gap for reviving the economy.

Funding the revenue gap

• Out of gross market borrowing of Rs12.05 lakh crore projected for FY 2021-22 in the Union Budget, Rs7.24 lakh crore (60%) was planned to be borrowed in first half (H1)
• The effective borrowing in H1 of FY22 was Rs7.02 lakh crore. The government now plans to borrow the balance Rs5.03 lakh crore in the second half

In consultation with the RBI, the Government has decided that the borrowing will be conducted in 21 weekly tranches of around Rs 24,000 crore each. — TNS

During the first half, the government has raised Rs 7.02 lakh crore by issuing bonds, the ministry said. The H2 projection also factors requirements for release of balance amount to states on account of back-to-back loan facility in lieu of GST compensation.