MUMBAI: Weighed down by higher expenses due to the devastating impact of the
Coronavirus
pandemic on the economy, the government on Friday said it will borrow about Rs 12 lakh crore from the market in fiscal year 2020-21, a massive increase of Rs 4.2 lakh crore, or 54% jump over the Budget estimate of Rs 7.8 lakh crore.
The decision for higher borrowing has also been prompted by severe loss of government revenues because of stalled economic activity across the country due to the stringent lockdown, economists said.
This, the economists said will push the
fiscal deficit
from the targeted 3.5% for 2020-21 to 5.5%. GST revenues as well as those from direct and indirect taxes are under severe strain while asset sales in state run companies which were expected to fetch much needed revenues have stalled in the midst of the Covid-