As the government plans to borrow Rs 5.13 lakh crore to meet 2012-13 fiscal deficit, Department of Economic Affairs Secretary R Gopalan today said there is some room to cut government borrowing.
“There is some scope to cut the government borrowings. We still think, there is some scope for reduction in borrowing”, he said.
As per the Budget 2012-13, the government’s fiscal deficit in 2012-13 is estimated at Rs 5.13 lakh crore. Fiscal deficit—difference between revenue receipts and total expenditure— indicates the borrowing requirements of government from all sources.
The Centre has announced that it would raise Rs 3.79 lakh crore in the first half of the fiscal, which is over 65 percent of the total amount that it plans to raise from borrowings during 2012-13.
In 2011-12, the government borrowed over Rs 5.1 lakh crore from the market. The borrowing had exceeded the budgeted borrowing target by over Rs 92,000 crore as high subsidy expenditure led to overshooting of government finances.
Amid ongoing debate on reducing oil and fertiliser subsidies, the government on several occasions has said that it was committed to contain its fiscal deficit to 5.1 percent this fiscal from 5.76 percent in the previous year.
In the first two months of the 2012-13, the fiscal deficit was Rs 1.41 lakh crore or 27 percent of the Budget Estimate.