New Delhi, Feb 17: The government today pegged its net borrowing for 2014-15 at Rs 4.57 lakh crore, Rs 11,580 crore less than the revised estimates of the current fiscal.
“The net market borrowing of the Central Government in 2014-15 is estimated to be Rs 4,57,321 crore,” as per the interim Budget 2014-15, presented by Finance Minister P Chidambaram in Parliament. During 2013-14, the government borrowed Rs 4,68,901.87 crore from the market.
The lower government borrowings will have a positive impact on the private sector. This is because government’s lower borrowings next fiscal would make more resources available for the private sector. The government today also said the fiscal deficit for the current financial year, ending March 31, will be contained at 4.6 per cent of GDP.
The fiscal deficit – the gap between expenditure and revenue – was 4.9 per cent of the GDP in 2012-13.
After talking over as Finance Minister in August 2012, Chidambaram had drawn up a financial consolidation road map to lower the fiscal deficit to 4.8 per cent of GDP in 2013-14, 4.2 per cent in 2014-15 and 3.6 per cent in 2015-16.
Presenting the Budget today, the Finance Minister also said that the GDP growth has improved and will be 4.9 per cent for the current financial year. Economic growth had slowed to a decade’s low of 4.5 per cent in 2012-13. PTI