Union Budget 2024 | Govt cuts borrowing target to Rs 14.01 lakh cr

New Delhi: The government has lowered its borrowings estimate for the current financial year to 14.01 lakh crore as there is an improvement in tax collection.

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

The gross market borrowings have now been revised downward to Rs 14.01 lakh crore from Rs 14.13 lakh crore estimated in the interim Budget presented in February this year.

"The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.01 lakh crore and Rs 11.63 lakh crore, respectively. Both will be less than that in 2023-24," Finance Minister Nirmala Sitharaman said while unveiling the Union Budget for 2024-25 in the Lok Sabha.

The gross and net borrowings in BE 2024-25 are 9.2 per cent and 1.5 per cent lower than gross borrowings of Rs 15.43 lakh crore and net borrowing of Rs 11.80 lakh crore in RE 2023-24, respectively.

The gross borrowing and net borrowing as per cent of GDP declined to 5.2 per cent and 4 per cent, respectively, in RE 2023-24 compared to 5.3 per cent and 4.1 per cent, respectively, in FY 2022-23.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.