Budget 2024: India's government is considering maintaining its gross market borrowing for the fiscal year 2024/25 at levels similar to those of the current year. This decision comes as the government aims to control its borrowings, which have surged due to increased spending during the pandemic.

According to two government sources familiar with the matter, India is likely to set its gross market borrowing for the next fiscal year between Rs 15 lakh crore ($180.47 billion) and Rs 15.5 lakh crore when Finance Minister Nirmala Sitharaman presents the budget on Feb. 1. This amount closely aligns with the target set for the current fiscal year ending on March 31, which stands at Rs 15.43 lakh crore. As of Jan. 22, the government has already raised approximately Rs 14.08 lakh crore, around 91% of the target.

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However, these figures represent a significant increase compared to the pre-pandemic levels, with the government's gross market borrowings standing at Rs 7.1 lakh crore in 2019/20.

Government officials, speaking on condition of anonymity as they are not authorized to discuss budget plans with the media, emphasized the government's commitment to reducing market borrowings this fiscal year.

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Economists' estimates also align closely with the government's likely borrowing figures, with a Reuters poll suggesting a projection of Rs 15.6 lakh crore.

Despite the upcoming elections, where Prime Minister Narendra Modi is seeking a third consecutive term, the government is expected to tighten its fiscal deficit by at least 50 basis points. This may involve limiting spending on welfare programs and subsidies.

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The poll further indicates that economists anticipate a reduction in India's fiscal deficit to 5.3% of gross domestic output in 2024/25, down from 5.9% in the current fiscal year.

As of now, India's finance ministry has not responded to requests for comments on these developments.

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