For Quick Alerts
For Daily Alerts

Covid 19 Impact: Govt. To Up Its Gross Borrowing For Fy21 To Rs. 12 Lakh Crore


As against the budget estimates (BE) for 2020-21, the government announced a raise in its estimated market borrowing from Rs. 7.8 lakh crore to Rs. 12 lakh crore. Giving the rationale, the government iterates that the Covid 19 pandemic has necessitated upward revision in borrowings.

Govt. To Up Its Gross Borrowing For Fy21 By Over 50% Due To Covid19

Gross market borrowing is the government's borrowing from the market when its revenues from tax and other sources fail to meet its expenses.

Also, for the remainder of H1FY21, a modification has been made in the gilt issuance calendar as part of which the government will borrow Rs. 6 lakh crore from the market via gilt in the remaining part of H1FY21.

This clearly provides for the intent that the RBI is not lending directly to the government.

"There are clear signs of government finances being affected by the shutdown as revenue has ebbed and expenditure pressure will be there through the year even after the lockdown is withdrawn," CARE Rating said in a note.

Read more about: borrowings coronavirus
Story first published: Friday, May 8, 2020, 20:07 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more