Union Budget 2025: Centre cuts borrowing target to Rs 11.54 lakh cr for FY26

New Delhi: The government has reduced its borrowings estimate for next financial year to Rs 11.54 lakh crore on net basis as it expects an improvement in tax collection.

The government has to borrow by issuing dated securities to meet its fiscal deficit target.

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However, gross market borrowings have now been revised upward to Rs 14.82 lakh crore from Rs 14.01 lakh crore estimated for the current financial year.

"Coming to 2025-26, the total receipts other than borrowings and the total expenditure are estimated at Rs 34.96 lakh crore and Rs 50.65 lakh crore respectively. The net tax receipts are estimated at Rs 28.37 lakh crore," Finance Minister Nirmala Sitharaman said in her Budget speech.

Fiscal deficit is estimated to be 4.4 per cent of GDP for FY26 as compared to 4.8 per cent of the GDP estimated for current financial year.

In absolute terms, fiscal deficit is pegged at Rs 15,68,936 crore for financial year 2025-26.

"To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs 11.54 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 14.82 lakh crore," she said.

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