India News | Govt Plans to Borrow Rs 7.5 Lakh Cr from Market in First Half of FY25

New Delhi, Mar 27 (PTI) The Centre is planning to raise Rs 7.5 lakh crore through market borrowing in the April-September period 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 2024-25, Rs 7.5 lakh crore, or 53 per cent, is planned to be borrowed in the first half (H1), an official statement said.

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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.

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"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.

There are signs of private investment picking up in the steel and cement sector due to massive capital expenditure by the government.

Against the estimate of Rs 10 lakh crore for 2023-24, the government has earmarked Rs 11.11 lakh crore during the next year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)