RBI reassures markets on managing record government borrowing
after close1 source ↓written by the desknot a recommendation
- more than FY26
- ₹2.5 trillion
- over this year
- ₹20,000 crore
- target
- 10% nominal GDP growth
- raises capex
- ₹12.21 trillion
RBI governor Sanjay Malhotra has addressed market concerns regarding the government's record borrowing of ₹17.2 trillion for FY27, which is ₹2.5 trillion more than FY26. He emphasized that the net borrowing increase is only ₹20,000 crore over this year, making it manageable amid a 10% nominal GDP growth target. The budget also raises capex to ₹12.21 trillion, aiming for fiscal consolidation while supporting growth.
Not investment advice. For informational purposes only.