The government needs more money to defeat the epidemic Corona. On the other hand, there has been a tremendous reduction in tax collection due to the nationwide lockdown. In view of this, the government has decided to increase the limit of borrowing from the market to Rs 4.2 lakh crore during the current financial year. The government has increased the limit of taking loans from the market by more than 50 percent. This means that in the financial year 2020-21, the government can borrow up to Rs 12 lakh crore from the market. This step of the central government will have a significant impact on the fiscal deficit. Finance Minister Nirmala Sitharaman, while presenting the Union Budget for the year 2020-21, had fixed the borrowing limit of Rs 7.80 lakh crore from the market. In FY 2019-20, this limit was Rs 7.1 lakh crore.
For your information, let us tell you that given the effect of lockdown on tax collection and the need to raise additional funds to fight the coronavirus, the government has raised about 54 per cent or 4.2 lakh in the market borrowing limit (market borrowing program) for the current financial year. Increasing crores of rupees to 12 lakh crores.
In a statement issued on Friday by the Finance Ministry regarding this matter, it said, "Gross market borrowing is estimated to be Rs 12 lakh crore in the financial year 2020-21. It was kept at Rs 7.80 lakh crore in the Budget Estimates for the year 2020-21. "In the Union Budget presented by Sitharaman on February 1, 2020, the fiscal deficit in the current fiscal year was targeted to be limited to 3.5 percent of GDP. Was Presently, given the increase in the borrowing limit and the huge decrease in revenue, it is difficult to estimate how much the fiscal deficit will increase.
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