Lockdowns hit revenue collections: Govt borrows 55 pc more so far this FY: Economist

Citing a massive revenue crunch due to the second wave of the pandemic that has compelled many states to declare full lockdowns for almost two months now, the Centre has borrowed Rs 2.1 lakh crore so far this fiscal year (FY), notably, it is 55 percent more than what it was a year ago, chief economist of Care Ratings Madan Sabnavis said on Friday.

The market borrowing of Rs 2.1 lakh crore is 17.5 percent of the budgeted debt creation of Rs 12.05 lakh crore for the full year and 30 percent of the first half borrowings calendar of Rs 7.24 lakh crore, he said. He further said total borrowings by the Centre so far this fiscal is a whopping 55 percent more than the same period last year and attributed it to the lockdowns in most states and the resultant impact on revenue collections.

 At the latest borrowing on Friday, the government borrowed only Rs 26,550 crore of the Rs 32,000 crore notified. Of the total bids worth Rs 19,114 crore were accepted by the RBI while bids for Rs 7,437 crore were devolved to the primary dealers. The total borrowing for the week is Rs 550 crore more than the notified amount but is 30 percent lower than the previous week.

 

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