New Delhi, Feb 1 (PTI) The government will borrow a record Rs 11.6 lakh crore from the market in 2022-23 to meet its expenditure requirement to prop up the economy hit by the COVID-19 pandemic.
This is nearly Rs 2 lakh crore higher than the current year’s Budget estimate of Rs 9.7 lakh crore.
Total market borrowings of the government for 2022-23 are estimated at Rs 11,58,719 crore, according to the Budget document.
The Revised Estimates for the same for 2021-22 are Rs 8,75,771 crore, as against the Budget Estimates of Rs 9,67,708 crore.
Even the gross borrowing for the next financial year will be the highest-ever at Rs 14,95,000 crore as against Rs 12,05,500 crore Budget Estimate (BE) for 2021-22.
However, the gross borrowing has been revised downwards by nearly Rs 2 lakh crore to Rs 10,46,500 crore for the current financial year.
Gross borrowing includes repayment of past loans. The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
Speaking at a post-Budget media interaction, Economic Affairs Secretary Ajay Seth said green bonds announced in the Budget is part of the overall borrowing target for the next financial year.
These would be issued for specific sectors and there are set of investors who would like to put their money in sectors that promote sustainable development, he said.
At this point of time, he said, this would be issued in the domestic market.
Finance Secretary and Expenditure Secretary T V Somanathan also emphasised it as part of the total borrowing projected at Rs 11.58 lakh crore.
Government raises its market loans under the Scheme of Sale of Dated Government Securities. These auctions are conducted by the Reserve Bank of India (RBI), as debt manager to the central government.
Besides, the government has completed the conversion of special securities issued in lieu of adhoc treasury bills into marketable securities during 2003-04.
The Government of India has also completed the conversion of Recapitalisation Bonds with nationalised banks into SLR (statutory liquidity ratio) marketable securities during 2007-08. PTI DP DP ABM ABM
