The central government will take a loan of Rs 16 lakh crore
Mumbai: The Indian government may borrow Rs 16 lakh crore in the next financial year starting April 1. This assumption comes from a survey conducted by economists. Spending on infrastructure development and fiscal discipline will be the two major priorities of the next budget.
Debt has increased in recent years due to government measures to ease the situation caused by Corona.
In view of the upcoming Lok Sabha elections 2024, the next budget will be the last full budget of the present government. There is a possibility of some popular advertisements by the government keeping the elections in mind.
In view of the proposed global recession, there are apprehensions that the government will see a shortfall in tax revenue, due to which the government will not be in a position to cut the cost of borrowing.
A survey conducted by over 40 economists has concluded that the government’s gross borrowing in the next financial year is expected to be Rs 16 lakh crore as against Rs 14.20 lakh crore estimated in the current financial year.
There is a possibility of borrowing Rs 14.80 lakh crore in low and Rs 17.20 lakh crore in high. Borrowing of Rs 14.80 lakh crore will also be a record till now.
In 2014, when the Modi government came to power, the gross borrowing figure stood at Rs 5.92 lakh crore. At present, the burden of repayment on the government is high, so it has to borrow more and more.
The repayment figure in the next financial year is estimated to be Rs 4.40 lakh crore. If the government is able to reduce the fiscal deficit to less than 6 per cent of GDP in the next financial year, it is much higher than the average of 4 to 5 per cent seen in the 1970s.
The government is worried that the proposed global recession will not only reduce the country’s tax revenue but also affect the sale of properties.
In the last two financial years, the budget expenditure under the infrastructure sector has been increased by 39 percent and 26 percent respectively. Finance Minister Nirmala Sitaram will also have to exercise to maintain the pace of development in the budget while keeping the fiscal deficit under control.