Extra-budgetary borrowings to be lowered progressively: Subhash Chandra Garg
Garg said the capital requirement for state-run insurance companies is still being worked out
July 08, 2019 / 11:45 AM IST
The government is looking to progressively lower its extra-budgetary resources (EBRs), Finance Secretary Subhash Chandra Garg told The Financial Express.
“We have taken a view that EVRs will be reduced over a period of time. This year’s EBR plan is lower than last year’s. So I don’t think there should be any more concerns about the EBR programme,” Garg said.
In Budget 2019-20, the government fixed EBRs at Rs 4.44 lakh crore, lower than last year’s figure of Rs 5.27 lakh crore.
The Finance Secretary attempted to allay fears that the government was using extra-budgetary loans to fund expenditure, which could mask the actual fiscal deficit. “We have made a complete and transparent disclosure about extra-budgetary borrowing in the Budget. So, nobody needs to speculate on it,” he said.
He also touched upon the Rs 70,000 crore capital infusion into state-run banks, saying that since the bulk of the funds will be used as growth capital, it will help boost lending. The rest of capital will be used to help stressed lenders meet their regulatory requirements, Garg added.
He said the capital requirement for public insurance companies is still being worked out. The Department of Financial Services had earlier sought Rs 4,000 crore.