Post Budget Analysis : The total fiscal deficit is at Rs 17.86 lakh Crores which has been funded prudently Says Murthy Nagarajan, Tata Mutual Fund
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Below is Debt Quote by Murthy Nagarajan, Head-Fixed Income, Tata Mutual Fund
“The Gross borrowing for the next financial year is estimated at Rs 15.43 Lakh Crores and net borrowing is expected to be Rs 11.8 Lakh Crores, with fiscal deficit of 5.9 % of GDP. This has been possible as the government is targeting to get Rs 4.7 Lakh inflows from small savings and borrow Rs 50000 Crores additional through one year treasury bills. The total fiscal deficit is at Rs 17.86 lakh Crores which has been funded prudently, net market borrowing constituting 66 % of funding requirement. This should ensure there is less pressure on interest rates due to lower market borrowing for next year. Given CPI inflation coming with in RBI tolerance band of 6 % and expected to come down further, in the next financial year RBI will now look to support growth in the economy and not singularly focus on inflation control.
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