The Center will borrow Rs 5.03 lakh crore for the half-year period

New Delhi: The Center will borrow Rs 5.03 lakh crore in the second half of the current financial year to revive the economy, which has stalled due to corona, and offset the decline in revenue, the finance ministry said on Monday. During the first half of the year, the Center borrowed Rs 7.02 lakh crore. Thus, the government will borrow Rs 12.05 lakh crore during the entire financial year 2021-22.

The government now plans to borrow Rs 5.03 lakh crore in the second half. This amount includes the amount of loan facility to be given to the states under GST and the amount to be given as compensation, he added.

According to Budget 2021-22, the total debt of the government was estimated at Rs 16.08 lakh crore, while the net debt during the financial year starting April 1 is estimated at Rs 9.37 lakh crore.

This total debt includes past loan repayments. 2.80 lakh crore of the previous loan is to be repaid in the next financial year.

The government is to raise money from the market to fund its fiscal deficit through dated securities and treasury bills.

The fiscal deficit in the next financial year is projected to narrow to 6.8 per cent of GDP from 9.5 per cent in the current financial year.

The statement said that the loan to be taken in the second half of the year will be taken on a weekly basis in a total of 21 installments of Rs 23,000 crore to Rs 24,000 crore. The loan will mature over a period of time. The two-year loan will be at four per cent, five-year at 11.9 per cent, ten-year at 28.4 per cent, 14-year at 17.4 per cent, 30-year at 13.9 per cent and 40.1-year at 15.1 per cent. Under floating rate bonds, loans will be taken at 8.8 per cent. However, if the government's account goes down, the Reserve Bank will spend Rs 50,000 crore on Wages and Means (WMA).