Govt to borrow Rs 4.2 lakh crore more: 5 harmful effects on economy
In the last 4-5 years, the government maintained fiscal deficit target of 3 to 3.5 per cent - an acceptable level with a glide path to reduce it to 3 per cent
- May 8, 2020,
- Updated May 11, 2020 5:42 PM IST
The government today announced it will borrow Rs 4.2 lakh crore from the market. The total gross borrowing target has now increased from Rs 7.8 lakh crore budgeted for FY21 to a staggering Rs 12 lakh crore. The government needs the additional money to meet coronavirus-related expenditure. It particularly needs to provide support to states gasping for funds. But nothing comes without a cost - the additional borrowing will have negative implications.
The government today announced it will borrow Rs 4.2 lakh crore from the market. The total gross borrowing target has now increased from Rs 7.8 lakh crore budgeted for FY21 to a staggering Rs 12 lakh crore. The government needs the additional money to meet coronavirus-related expenditure. It particularly needs to provide support to states gasping for funds. But nothing comes without a cost - the additional borrowing will have negative implications.