Government borrowing of ₹17.2 lakh crore to be completed in non-disruptive manner: Economic Affairs Secretary Anuradha Thakur

Economic Affairs Secretary Anuradha Thakur has said government borrowing of Rs 17.2 lakh crore for the next financial year will be completed in a non-disruptive manner, ensuring that enough funds are available for the private sector.

“The government borrowing programme also includes Rs 5.5 lakh crore for repayment. So, the net borrowing would be Rs 11.73 lakh crore. It is in the same range as has been the case earlier,” she told PTI in an interview.

“To that extent, we feel that it is an all right number to have. Overall, it is a big number, but given that a large number of bonds are also maturing,” she said, when asked if the record Rs 17.2 lakh crore borrowing could crowd out private investment. She assured that it is manageable and the figure has been arrived at after careful calculations and analysis.

The government had estimated a gross borrowing Budget of Rs 14.61 lakh crore in FY26 against the budget estimate of Rs 14.82 lakh crore. The government borrows from the market through dated securities to fund its fiscal deficit. Talking about the Budget announcement related to Alternative Investment Funds (AIFs), Thakur said the industry’s long-pending demand has been accommodated in this Budget.

They were demanding that if the LLP Act can be modified and amended, and aligned with the functional requirements of AIFs, she said. The amendments aim to remove operational constraints faced by AIFs, which often operate as trusts, by allowing them to transition into or operate as LLPs.

There will also be rationalisation of document filing for entry and exit of partners, she said, adding that these amendments are going to be of a nature that, by becoming LLPs, their liability will be limited.

Besides, she said, the Budget proposal of allowing Persons Resident Outside India (PROIs) to invest in equity instruments through the portfolio investment scheme (PIS) route is another important announcement to increase foreign currency flow.

“PROIs will be permitted to invest in equity instruments of listed Indian companies through the portfolio investment scheme.

“It is also proposed to increase the investment limit for an individual PROI under this scheme from 5 per cent to 10 per cent, with an overall investment limit for all individual PROIs to 24 per cent, from the current 10 per cent,” Finance Minister Nirmala Sitharaman said in her Budget speech on Sunday.