New Delhi: The government is not planning any additional borrowing and will stick to the borrowing target fixed for the current fiscal year, a government source said on Wednesday.
The Government lost ₹ 1 lakh crore in revenue after it cut excise duty cut on petrol and diesel to temper inflation. This revenue dent was seen to be filled by additional borrowings.
But a government source said no extra borrowings is being planned as yet.
This information has come amid a Reuters report that the Centre is planning to spend an additional ₹ 2 lakh crores ($26 billion) in the current fiscal to safeguard consumers from rising prices and fight multi-year high inflation.
On May 21, Finance Minister Nirmala Sitharaman had announced excise duty cuts on petrol and diesel, which could hit the government revenues by ₹ 1 lakh crore.
India is already reeling under sky-high inflation and with excise duty cut on fuel prices, the Government is under a tight situation financially.
Retail inflation soared to an eight-year high in April, while wholesale inflation rose to at least a 17-year high. (NDTV)
