No Plans For Additional Borrowing This Fiscal: Government Sources

There are no plans of any additional borrowing by Government

New Delhi:

Government is not planning any additional borrowing and will stick to the borrowing target fixed for the current fiscal year, a government source said on Wednesday.

The Government lost Rs 1 lakh crore in revenue after it cut excise duty cut on petrol and diesel to temper inflation. This revenue dent was seen to be filled by additional borrowings.

But a government source said no extra borrowings is being planned as yet. 

This information has come amid a Reuters report that the Centre is planning to spend an additional Rs 2 lakh crores ($26 billion) in the current fiscal to safeguard consumers from rising prices and fight multi-year high inflation.

On May 21, Finance Minister Nirmala Sitharaman had announced excise duty cuts on petrol and diesel, which could hit the government revenues by Rs 1 lakh crore.  

India is already reeling under sky-high inflation and with excise duty cut on fuel prices, the Government is under a tight situation financially.

Retail inflation soared to an eight-year high in April, while wholesale inflation rose to at least a 17-year high.