The government has trimmed its net borrowings estimate for the next financial year to Rs 11.54 lakh crore as it hopes for improvement in tax collection.
The government needs to borrow, raising dated securities, to meet its fiscal deficit target.
However, gross market borrowings have now been upwardly revised to Rs 14.82 lakh crore from the Rs 14.01 lakh crore estimated for the current financial year.
"Coming to 2025-26, the total receipts other than borrowings and the total expenditure are estimated at Rs 34.96 lakh crore and Rs 50.65 lakh crore respectively. The net tax receipts are estimated at Rs 28.37 lakh crore," Finance Minister Nirmala Sitharaman said in her Budget speech.
Fiscal deficit is estimated to be 4.4 per cent of GDP for FY26 in contrast to the estimated 4.8 percent of the GDP for the ongoing financial year.
In absolute terms, fiscal deficit is pegged at Rs 15,68,936 crore for the financial year 2025-26.
"To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs 11.54 lakh crore. The balance financing is anticipated to come from small savings and other sources. The gross market borrowings are estimated at Rs 14.82 lakh crore," she said.
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