Government cuts borrowing target to ₹14.01 lakh crore for 2024-25

Jul 23, 2024 04:07 PM IST

The government has lowered its borrowings estimate for the current financial year to 14.01 lakh crore as there is an improvement in tax collection.

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The government has to borrow by issuing dated securities to meet its fiscal deficit target.

The gross market borrowings have now been revised downward to ₹14.01 lakh crore from ₹14.13 lakh crore estimated in the interim Budget presented in February this year.

“The gross and net market borrowings through dated securities during 2024-25 are estimated at ₹14.01 lakh crore and ₹11.63 lakh crore, respectively. Both will be less than that in 2023-24,” Finance Minister Nirmala Sitharaman said while unveiling the Budget for 2024-25 in the Lok Sabha.

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The gross and net borrowings in BE 2024-25 are 9.2 per cent and 1.5 per cent lower than gross borrowings of ₹15.43 lakh crore and net borrowing of ₹11.80 lakh crore in RE 2023-24, respectively.

The gross borrowing and net borrowing as per cent of GDP declined to 5.2 per cent and 4 per cent, respectively, in RE 2023-24 compared to 5.3 per cent and 4.1 per cent, respectively, in FY 2022-23.

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