New Delhi: Finance Minister Nirmala Sitharaman on Thursday proposed to borrow Rs 14.13 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year starting on April 1.
This is lower than last year’s gross borrowing estimate of Rs 15.43 lakh crore, which was the highest ever.
The lower borrowing estimate for 2024-25 is on account of growing tax revenue and the government’s resolve to meet its fiscal consolidation roadmap.
About net borrowing estimate, Sitharaman while presenting the interim Budget for 2024-25 said it would be Rs 11.75 lakh crore during the next financial year.
As a result, the government would make repayment of Rs 2,37,818 crore during the year.
"The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 and Rs 11.75 lakh crore respectively. Both will be less than that in 2023-24. Now that the private investments are happening at scale, the lower borrowings by the Central Government will facilitate larger availability of credit for the private sector," she said.
There are signs of private investment picking up in the steel and cement sector due to massive capital expenditure by the government.
Against the estimate of Rs 10 lakh crore for 2023-24, the government has earmarked Rs 11.11 lakh crore during the next year.
As per the revised estimate for FY24, the capital expenditure would be Rs 9.5 lakh crore, short by Rs 50,000 crore over the BE for the current fiscal.