Economic Affairs Secretary Tarun Bajaj has said that the government will borrow Rs 7.24 lakh crore, which is 60.06 percent of the gross issuances, in the first half of 2021-22 fiscal (H1FY22) to meet resources to perk up the economy hit by the coronavirus pandemic. According to the Budget 2021-22, the government's gross borrowing was estimated at Rs 12.05 lakh crore in the financial year beginning April 1.
Bajaj has stated that the government would issue 2-year, 5-year, 10-year, 14-year, 30-year, and 40-year securities. On the expected rate for the next financial year, he said the Reserve Bank of India (RBI) will take appropriate action to ensure that yields remain in reasonable limit. Gross borrowing includes repayments of past loans. Repayment for past loans in the next financial year has been pegged at Rs 2.80 lakh crore. The gross borrowing from the market for the next year would be around Rs 12 lakh crores.
He further said the fiscal deficit for the current fiscal would be around the Revised Estimate announced in the Budget. He said ‘fiscal deficit number in February may be low at 76 per cent but in March, we have pushed a lot of expenditure. So, it should be closer to the number mentioned in RE in the Budget.’ With regard to inclusion of government bonds in global indices, he said efforts are on and it should happen in FY22.