New Delhi, September 27: 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, the finance ministry said on Monday. During the first half, the government has raised Rs 7.02 lakh crore by issuing bonds, the ministry said in a statement.

"Out of gross market borrowing of Rs 12.05 lakh crore projected for FY 2021-22 in the Union Budget, Rs 7.24 lakh crore (60 per cent) was planned to be borrowed in first half (H1). "The effective borrowing in H1 of FY 2021-22 was Rs 7.02 lakh crore. The Government now plans to borrow the balance Rs 5.03 lakh crore in second half year (H2) of FY 2021-22," it said.

The H2 projection also factors requirements for release of balance amount to states on account of back-to-back loan facility in-lieu of GST compensation during the year, it added. India Needs 4 -5 More Banks Like SBI To Meet Changing Requirements of Indian Economy, Says FM Nirmala Sitharaman.

According to the Budget for 2021-22, the government's gross borrowing was estimated at Rs 12.05 lakh crore, while net borrowing was pegged at Rs 9.37 lakh crore in the financial year beginning April 1.

Gross borrowing includes repayments of past loans. Repayment for past loans in the next financial year has been pegged at Rs 2.80 lakh crore. 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 next fiscal, down from 9.5 per cent of the GDP in the current financial year.

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