New Delhi: Indicating worsening public finances, the government on Friday pegged its net borrowing for 2012-13 at Rs 4.79 lakh crore, about Rs 43,000 crore higher than the revised estimates of the current fiscal.
"After taking into account other items of financing, the net market borrowings through dated securities to finance this deficit is Rs 4.79 lakh crore," Finance Minister Pranab Mukherjee said in his Budget speech in the Lok Sabha.
With this, the total debt stock at the end of 2012-13 would work out at 45.5 per cent of GDP as compared to the Thirteenth Finance Commission target of 50.5 per cent of GDP, he said.
The effective revenue deficit in 2012-13 Budget Estimates works out to Rs 1,85,752 crore which is 1.8 per cent of GDP, he said.
The higher government borrowings will have a negative impact for the private sector. This is because government borrowings next fiscal would crowd out resources available for the private sector, more than it did in 2011-12.
The higher borrowing will also put pressure on the inflation, analysts said.
However, Reserve Bank deputy governor KC Chakrabarty said private credit demand will not be crowded out as a result of higher market borrowing by the government.
During 2011-12, the government borrowed Rs 4.36 lakh crore from the market, up by about Rs 93,000 crore over the Budget estimate of Rs 3.43 lakh crore.
With market borrowing going up, the fiscal deficit for the next fiscal has been pegged at 5.1 per cent, against 5.9 per cent for 2011-12.
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