The Centre is planning to raise Rs 7.5 lakh crore through market borrowing in the first half of 2024-25 to fund the revenue gap to push economic growth, the finance ministry said on Wednesday.
Out of gross market borrowing of Rs 14.13 lakh crore estimated for FY25, Rs 7.5 lakh crore, or 53 per cent, is planned to be borrowed in H1, an official statement said.
Finance Minister Nirmala Sitharaman in interim Budget proposed to borrow Rs 14.13 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year. This is lower than last year’s gross borrowing estimate of Rs 15.43 lakh crore, which was the highest ever.
“The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. “Both will be less than that in 2023-24. Now that private investments are happening at scale, the lower borrowings by the central government will facilitate larger availability of credit for the private sector,” she had said.