With off-budget borrowings, FY22 fiscal deficit rises to 6.9%: Report

The target will go up by 10 basis points to 6.9 per cent of the GDP if the extra-budgetary borrowings of Rs 30,000 crore, which is massively down from Rs 1.3 lakh crore this fiscal, is added, according to a report.

The budget has pegged at 9.5 per cent for FY21 and 6.8 per cent for FY22 excluding the off-budget borrowings of Rs 1.3 lakh crore and Rs 30,000 crore, respectively. But if we included these numbers, the deficit numbers would rise by 70 basis points to 10.2 per cent for FY21 and 6.9 per cent of GDP for FY22, according to a SBI Research report.

At 6.9 per cent for the centre and 4 per cent for the states, the combined market borrowings next fiscal will be Rs 23.3 lakh crore. Of this, the centre’s net borrowings are seen at Rs 8.9 lakh crore and gross borrowings at Rs 12.05 lakh crore in FY22.

Thus, the combined gross borrowing of the centre and the states in FY22 comes to 23.3 lakh crore while net borrowing stands at Rs 18.1 lakh crore which is similar

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Budget 2021: Customs duty hike to make electronics items more expensive

To give a push to its Atmanirbhar Bharat policy, the Centre on Monday unveiled a revised structure that will effectively increase duties on a wide range of items.

The upward revision in rates, effective from Tuesday itself, are intended to curb import of auto components and agri produce. In sectors like electronics, they may lead to further price hikes in the coming months.

In the Budget for 2021-22, finance minister Nirmala Sitharaman introduced higher import duty rates on over a dozen handset and automobile components.

Key electronic components like printed circuit board assembly, camera module and connectors will now attract 2.5 per cent duty.

In the automobile sector, rates for dozens of items, like safety glasses, parts of the signalling equipment, brakes and ignition wire sets have been raised to 15 per cent from 10 per cent.

Further, import of a vast number of items in the agri sector, fabrics, gems and jewellery, plastics, chemicals and leather have been made unattractive by hikings duties on them.

ALSO READ: Budget 2021: Easier compliance, tax administration to boost revenue

According to industry

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When would you use bridging finance

Bridging finance is becoming a more popular source of finance for those looking to raise money for a property purchase under a tight deadline.

The bridging industry has increased from £1 billion to £7 billion since 2011 and there are currently around 40 lenders in the industry. There are different circumstances in which you would decide to use bridging finance and we take a look at some of the most popular reasons for doing so.

Bridging loans explained

Bridging finance is a type of short-term loan that can allows the borrower to access money quickly and is most commonly used by property owners, developers and investors in order to be able to refurbish a property, or to move into a new property whilst waiting for their current property to be sold.

Customers and businesses can borrow between £50,000 to £25 million with different rates and loans to value available for different circumstances.

Many loan providers will also consider people even if their credit score is less than perfect, since you are using property as collateral and leveraging its value in order to borrow finance, explains Tiger Bridging.

If you are property developer

Bridging finance can be an excellent option if

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