- The government will borrow Rs 5.03 lakh crore in the second half of the current fiscal to fund the revenue gap for reviving the pandemic-hit economy.
- During the first half, the government has raised Rs 7.02 lakh crore by issuing bonds.
- The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
- The Budget has pegged fiscal deficit at 6.8 per cent for the current fiscal, down from 9.5 per cent of the GDP projected for FY21.
What is government borrowing?
- Borrowing is a loan taken by the government and falls under capital receipts in the Budget document. Usually, the Government borrows through the issue of government securities called G-secs and Treasury Bills.
Source : times of india