Second half market borrowing to remain unchanged: CEA

Chief Economic Consultant V Anantha Nageswaran said that on Monday, the government’s estimated 6.82 Lakh Crore in the second half of the current fiscal year would depend on a 4.4 percent financial deficit target and restrict market borrowing.

The government announced that it borrowed RS 8 Lakh Crore through securities dated 2025-26 April-September period to finance the income gap.

“We are sure to maintain the financial deficit and the second half market debt will not change,” Network18 Reforms Reforms Summit. He said.
The Union government is expected to announce a borrowing calendar for the second half (October-March) this week, consulting the Indian Reserve Bank.

It is estimated that GDP is 4.4 percent compared to 4.8 percent of GDP, which is estimated for the current financial year – the gap between the total income of the government – the total income of the government.

In order to finance the financial deficit, the government resorts to market borrowings. 2025-26, RS 8 Lakh Crore or 14.82 Lakh Crore Gross Market Borrowing for 54 percent, in the first half (H1), RS 10,000 Crore Degreign Green Bonds (SGRB) is planned to be borrowed through the export of securities. In the absolute sense, the financial deficit was fixed to 15,68,936 RS for the financial year of 2025-26. In order to finance the financial deficit, net market borrowings obtained from the dated securities are estimated to be 11.54 Lakh Crore. Balance financing is expected to come from small savings and other sources.

Nageswaran also said that the GDP growth of India’s 26 fiscal years will tend to 6.3-6.8 percent in 26 financial years after the GST 2.0 reforms that came into force on Monday.

The economic survey in Parliament in January envisaged a real economic growth of 6.3-6.8 percent for 26 financial years.

“GST 2.0 is a very important turning point reform. I am sure that the domestic demand will provide a very important support. To come to the top of indirect taxes is the concessions and help that is declared as part of the union budget. By taking the effect of multiplier, they will certainly increase the GDP numbers.” He said.

Authorized, the total impact of the total effect on the economy due to direct tax revenue (income tax deductions) and indirect tax reduction (GST ratio deductions) will be more than 2.5 Lakh Crore, but some other uncertainties may dilute the effect.