Budget 2016: Government to borrow Rs 4.2 lakh crore in FY17

NEW DELHI: Government will borrow Rs 4.2 lakh crore from the market in 2016-17, down from Rs 4.4 lakh crore in the current fiscal.

The budgeted target for borrowing in current fiscal was Rs 4.5 lakh crore, but the government will raise only Rs 4.4 lakh crore from the markets, as per the Budget papers presented by Finance Minister Arun Jaitley in Parliament today.

"By containing fiscal deficit for next fiscal at 3.5 per cent, we have ensured that the borrowing from the market is kept at the minimal level. It's Rs 4.2 lakh crore," Economic Affairs Secretary Shaktikanta Das said.

He further said the government borrowing would be done in non-disruptive manner.

It will be done in such a way that it does not crowd out private borrowing, he added.

Fiscal deficit is the difference between the Revenue receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure. This indicates the total borrowing requirements of Government from all sources.

However, gross borrowing has been pegged at Rs 6 lakh crore up for 2016-17 up from Rs 5.8 lakh crore in the ongoing fiscal.

Gross borrowing includes repayments of past loans and interests.

Repayment for past loans for the next fiscal has been pegged at 1.8 lakh crore.