Central government to borrow 16 lakh crore rupees

- Debt has increased in recent years due to government measures to ease the situation caused by Corona

- The next budget will be the last full-fledged budget of the current government in view of the upcoming Lok Sabha elections in 2024. The government can make popular announcements.

Mumbai: The Indian government is likely to borrow Rs 16 lakh crore in the next financial year starting from April 1. This assumption came from a survey conducted by economists. Expenditure on infrastructure development and fiscal discipline will be the two main priorities of the next budget.

Due to the government's measures to ease the situation caused by Corona, the debt has increased in recent years.

The next budget will be the last full-fledged budget of the current government in view of the upcoming Lok Sabha elections in 2024. Keeping in mind the elections, there is a possibility of some popular advertisements by the government.

In view of the proposed global recession, there are fears that the government will see a reduction in tax revenue, due to which the government will not be in a position to cut down on borrowing costs.

A survey conducted by more than 40 economists has concluded that the government's gross borrowing is expected to be Rs 16 lakh crore in the next financial year against the estimated Rs 14.20 lakh crore in the current financial year.

There is a possibility of borrowing of Rs 14.80 lakh crore in low and Rs 17.20 lakh crore in high. Borrowing of Rs 14.80 lakh crore will also be a record so far.

In 2014, when the Modi government came to power, the figure of gross borrowing was Rs 5.92 lakh crore. At present, the burden of repayment on the government is high, so it has to do more and more borrowings.

The figure of repayments in the next financial year is estimated to be Rs 4.40 lakh crore. If the government is able to reduce the fiscal deficit to below 6 percent of GDP in the next financial year, it is much higher than the average of 4 to 5 percent seen in the 1970s.

The government is worried that the proposed global recession will not only reduce the country's tax revenue, but also affect the sale of assets.

In the last two financial years, the budget expenditure under the infrastructure sector was increased by 39 percent and 26 percent. Finance Minister Nirmala Sitharam will also have to undertake the exercise of keeping the pace of growth in the budget while keeping the fiscal deficit under control.