Budget 2020: Govt to borrow Rs 8.1 trillion from the market in FY21

Mobilisation till December was Rs 1.2 trillion, half of the FY20 target of Rs 2.4 trillion

The government will be borrowing Rs 8.1 trillion from the market in fiscal year 2020-21 (FY21). 

Contrary to market expectations, it will not engage in extra borrowings in the current financial year. Instead, it will mobilise higher resources from small savings, Budget documents show.

However, not everybody in the market is ready to buy the math.

The extra borrowings may not happen even as the fiscal deficit widened to 3.8 per cent of the gross domestic product (GDP) for FY20 from 3.3 per cent budgeted earlier, as the government leaned on the trigger clause of the Fiscal Responsibility and Budget