The fiscal deficit 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 fiscal deficit 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