Govt fixes H1 borrowing target at Rs 3.72 lakh crore

The borrowing target in the first half is slightly more than the previous year as the finance ministry and the Reserve Bank of India expect spending to pick up pace early.

The government has fixed a borrowing target of Rs 3.72 lakh crore for the first half of 2017-18, which is 64 percent of the budgeted level of Rs 5.8 lakh crore for the full year, economic affairs secretary Shaktikanta Das said on Tuesday.

The borrowing target in the first half is slightly more than the previous year as the finance ministry and the Reserve Bank of India expect spending to pick up pace early.

Das justified the higher target saying since the Budget was advanced to February 1 this year, the funds have to be made available from the beginning of the next fiscal itself.

The net average weekly borrowings in first half of 2017-18 will be Rs 15,000 crore.

For the full year, the net borrowing has been estimated at Rs 4.23 lakh crore.

The government borrows from the market to meet its yearly expenditure and gross borrowing includes loan and interest repayment.