{"id":32465,"date":"2018-10-29T14:54:11","date_gmt":"2018-10-29T09:24:11","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=32465"},"modified":"2018-10-29T14:54:11","modified_gmt":"2018-10-29T09:24:11","slug":"govt-to-borrow-more-fiscal-deficit-may-widen","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/govt-to-borrow-more-fiscal-deficit-may-widen\/","title":{"rendered":"Govt. to borrow more; fiscal deficit may widen\u00a0"},"content":{"rendered":"

Govt. to borrow more; fiscal deficit may widen<\/strong><\/a>\u00a0<\/strong><\/p>\n

Context <\/strong><\/p>\n

The Centre has decided to borrow an additional \u20b950,000 crore in the last three months of this financial year, a move that some economists said could result in the government missing its budgeted fiscal deficit target of 3.2% of GDP<\/p>\n

Countermeasure<\/strong><\/p>\n

The additional borrowing, which would be done through government bonds, would, however, be offset by trimming T-Bills (treasury bills) from \u20b986,203 crore to \u20b925,006 crore<\/p>\n

Review of borrowing programme<\/strong><\/p>\n

The borrowing programme of the Government of India has been reviewed, with RBI, and following decisions taken:<\/p>\n

    \n
  1. The Government will trim down the T-Bills from present collections of \u20b986,203 crore to \u20b925,006 crore by March end, 2018<\/li>\n
  2. The Government will raise additional market borrowings of \u20b950,000 crore only in fiscal FY18 through dated government securities<\/li>\n
  3. The Government will thus, between now and March 2018, not be raising any net additional borrowing (T-Bills will be run down by \u20b961,203 crore and additional G-Sec borrowing will be \u20b950,000 crore)<\/li>\n<\/ol>\n

    Impact<\/strong><\/p>\n

    Any slippage from the fiscal deficit target this year, could have an indirect effect on the overall fiscal consolidation efforts<\/p>\n