A day after the Goods and Services Tax (GST) collection for November showed a decline in revenue receipts, the government has decided to raise additional market borrowing of Rs 50,000 crore through dated government securities in the last three months of FY18. The move may result in a breach of its fiscal deficit target of 3.2% of gross domestic product (GDP) set for this fiscal year.
Besides, the government will trim down the T-Bills from present collections of Rs 86,203 crore to Rs 25,006 crore by March end 2018. However, it also clarified that there would be no change in the net borrowing as envisaged in the Union budget for 2017-18. Noting that borrowings till December26, 2017 have been conducted in line with the borrowing calendar fixed for the fiscal, government clarified that gross and net market borrowings are Rs 5,21,000 crore and Rs 3,81,281 crore, excluding buyback/switches, respectively as on December. As against the budgeted net T-bills receipt of Rs 2,002 crore, net collections till 26 December 2017 are Rs 86,203 crore.
Since the revenue collection from the GST is slightly lower than the expected in the last two months, the additional borrowing would help bridge the shortfall. The GST collections fell for the second consecutive month to Rs 80,808 crore in November, down from Rs 83,346 crore in October, mainly due to sharp cuts in the tax on over 200 items from November 15.
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