The Union finance ministry and the Reserve Bank of India (RBI) are likely to finalise the market borrowing programme for the first half (H1) of the next financial year (2023-24) on March 27.

The government borrows funds from the market to bridge the revenue-expenditure gap and also roll over past debts which mature for repayment.

Union Finance Minister Nirmala Sitharaman while presenting the Union Budget said the government plans to borrow a record Rs 15.4 lakh crore from dated securities in FY24 to meet its expenditure requirement to prop up the economy.

This is higher than the total borrowing of Rs 14.21 lakh crore for the current financial year ending March 31, 2023.

Also Read: PFC to raise up to Rs 80,000 crore in FY24 via debt instruments

Sitharaman said the net market borrowings from dated securities are estimated at Rs 11.8 lakh crore to finance the fiscal deficit in 2023-24.

"The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 15.4 lakh crore," she said.

The government has raised Rs 12.93 lakh crore till January 27, which is 91 percent of the overall borrowing target of Rs 14.21 lakh crore estimated for 2022-23. The indebtedness of the Centre and state governments together is equal to 83 percent of the annual gross domestic product (GDP).

The finance minister retained the fiscal deficit target at 6.4 percent despite an increase in the subsidy bill.

Also Read: UBS to buy rival Credit Suisse in $3.3 billion deal to end crisis

"Coming to 2023-24, the total receipts other than borrowings and the total expenditure are estimated at Rs 27.2 lakh crore and Rs 45 lakh crore, respectively. The net tax receipts are estimated at Rs 23.3 lakh crore," she said. She pegged the fiscal deficit at 5.9 percent of GDP for FY24.

"In my Budget Speech for 2021-22, I had announced that we plan to continue the path of fiscal consolidation, reaching a fiscal deficit below 4.5 percent by 2025-26 with a fairly steady decline over the period. We have adhered to this path, and I reiterate my intention to bring the fiscal deficit below 4.5 percent of GDP by 2025-26," she said.

Sitharaman had pegged gross market borrowing through dated securities for 2022-23 at Rs 14,95,000 crore.

Also Read: Tamil Nadu to double capex in two years, says Finance Minister P Thiagarajan