The government will borrow Rs 2.45 lakh crore in the six month period beginning October to meet the fiscal deficit target of 3.5 per cent for 2016-17.
The government will borrow Rs 2.45 lakh crore in the six month period beginning October to meet the fiscal deficit target of 3.5 per cent for 2016-17. The second half gross borrowing in the current financial year is unchanged at Rs 2.45 lakh crore while net borrowing during the same period would be Rs 1.77 lakh crore, sources said.
As per the Budget estimate, government was required to raise Rs 2.45 lakh crore in the second half of 2016-17 from the dated securities floated by RBI on behalf of the government.
As much as Rs 1.88 lakh crore would be raised through treasury bills, sources said, adding that the government may revise securities buyback upwards of budget target of Rs 75,000 crore.
The government would not like to keep enough cash with the government, sources said.
During the first half, the government made gross borrowing of Rs 3.55 lakh crore.
In the Budget, the government has pegged gross market borrowing for 2016-17 at Rs 6 lakh crore and net borrowing at Rs 4.2 lakh crore.
The government borrows money from the market through T-bills and other instruments to fund its deficit.