"On review of position of cash balance, the Government of India has decided to cancel the above scheduled auction," the central bank said in a statement.
According to the Revised Estimate, the gross borrowing for the current financial year was raised to Rs 12.8 lakh crore as against the Budget Estimate of Rs 7.8 lakh crore, registering an increase of 64 per cent.
"The gross borrowing from the market for the next year (2021-22) would be around Rs 12 lakh crores. We plan to continue with our path of fiscal consolidation, and intend to reach a fiscal deficit level below 4.5 per cent of GDP by 2025-2026 with a fairly steady decline over the period," Finance Minister Nirmala Sitharaman had said while announcing Budget for 2021-22.
The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
As a result, net borrowing would come down to Rs 9.24 lakh crore for the next fiscal, while for the current fiscal it is estimated at Rs 10.52 lakh crore during 2020-21.
The Budget has pegged fiscal deficit at 6.8 per cent for the next fiscal, down from 9.5 per cent of the GDP in the current financial year. The fiscal deficit in RE 2020-21 is pegged at 9.5 per cent of GDP.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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