Extra-budgetary fund-raising through fully serviced bonds shot up in FY19

Issuances of Government of India-Fully Serviced Bonds (GoI-FSBs) shot up during FY19 and accounted for 0.34% of GDP. During FY17, North Block gave its nod to the Ministry of Power, Ministry of New and Renewable Energy, Ministry of Shipping, and Ministry of Water Resources, River Development and Ganga Rejuvenation (MoWR) to raise extra-budgetary resources through GoI-FSBs.

While the Centre’s net borrowings remained stable at Rs 4.1-4.3 lakh crore during this period and fiscal deficit as percentage of GDP went down to 3.4% (Estimates) from 3.5% between FY18 and FY2017, if GoI-FSBs were to be accounted for, the fiscal deficit would have