Budget 2018: Govt to borrow Rs 200 billion more in FY18, says Subhash Garg
All other factors being
constant, this could take financial deficit to 3.4% of GDP
BUDGET
2018 : The
government will reduce its additional borrowing to Rs 200 billion from the bond
markets in the financial year 2017-18, from Rs 500 billion announced last
month, Economic Affairs Secretary Subhash
Garg said.
This is primarily because the Reserve Bank of India will pay
a higher-than-anticipated surplus to the Centre, and the dividend target from
state-owned companies will also be met, senior government sources confirmed
separately to Business Standard.
While disinvestment target for the year is expected to
overshoot the budgeted estimates by quite a margin, things seem to be looking
up on the direct taxes front as well. There are still expectations of a
shortfall in goods and service tax and spectrum sales.
“Government has reassessed additional borrowing requirements
taking note of revenue receipts and expenditure pattern. The requirement of
additional borrowing being reduced from Rs 50,000 crore (Rs 500 billion) as
notified earlier to Rs 20,000 crore,” Garg tweeted on Wednesday morning.
When the additional borrowing of Rs 500 billion was announced
in late December, analysts expected fiscal deficit as a percentage of gross
domestic product to cross 3.5 per cent of GDP, as opposed to a budgeted target
of 3.2 per cent.
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