The federal government will borrow Rs 5.03 lakh crore within the second half of the present fiscal to fund the revenue gap for reviving the pandemic-hit financial system, the finance ministry stated on Monday.

Through the first half, the federal government has raised Rs 7.02 lakh crore by issuing bonds, the ministry stated in an announcement.

“Out of gross market borrowing of Rs 12.05 lakh crore projected for FY 2021-22 within the Union Budget, Rs 7.24 lakh crore (60 per cent) was deliberate to be borrowed in first half (H1).

“The effective borrowing in H1 of FY 2021-22 was Rs 7.02 lakh crore. The Authorities now plans to borrow the stability Rs 5.03 lakh crore in second half 12 months (H2) of FY 2021-22,” it stated.

The H2 projection additionally components necessities for launch of stability quantity to states on account of back-to-back mortgage facility in-lieu of GST compensation in the course of the 12 months, it added.

Based on the Price range for 2021-22, the federal government’s gross borrowing was estimated at Rs 12.05 lakh crore, whereas internet borrowing was pegged at Rs 9.37 lakh crore within the monetary 12 months starting April 1.

Gross borrowing contains repayments of previous loans. Compensation for previous loans within the subsequent monetary 12 months has been pegged at Rs 2.80 lakh crore.

The federal government raises cash from the market to fund its fiscal deficit via dated securities and treasury payments.

The Price range has pegged fiscal deficit at 6.8 per cent for the subsequent fiscal, down from 9.5 per cent of the GDP within the present monetary 12 months.

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