Out of the estimated Rs 12 lakh core borrowing for the full year, the government has already borrowed Rs 7.66 lakh crore, which accounts for 63.8 percent of the target
The government would borrow Rs 4.34 lakh crore in the second half of FY21 and there would be no change in its Rs 12 lakh crore borrowing plan for the whole year as was decided in May.
"The borrowing target was raised to Rs 12 lakh crore in May from the originally budgeted figure of Rs 7.6 lakh crore keeping in mind the economic fallout of the covid-19 pandemic, and the decision was to stick to this as per current estimates," economic affairs secretary Tarun Bajaj said at a briefing on September 30.
Out of the estimated Rs 12 lakh core borrowing for the full year, the government has already borrowed Rs 7.66 lakh crore, which accounts for 63.8 percent of the target, Bajaj said.
"We have decided to continue with the same figure of Rs 12 lakh crore for the entire year. Which means our borrowing for second half would be Rs 4.34 lakh crore or 36.1 percent of the Rs 12 lakh crore to be borrowed for the whole year," Bajaj said.
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A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
The government aims to raise Rs 24,000 crore through two-year tenor, Rs 68,000 crore through 5-year tenor, Rs 96,000 crore through 10-year G-secs, Rs 90,000 crore through 14-year tenor, Rs 72,000 crore through thirty-year tenor, Rs 52,000 crore through 40-year tenor, and Rs 32,000 crore through floating rate bonds.
The government does not wish to crowd out private sector which might need to borrow as they continue to recover from the impact of the COVID-19 pandemic in the third and fourth quarters, Bajaj said.
Bajaj also said there would be no change in interest rates on small savings scheme for October-December.
The government in its internal estimates on revenue and expenditure, on the basis of which the borrowing figure was decided, factored in lower divestment receipts.Bajaj said the government doesn't expect Rs 2.1 lakh crore in divestment receipts for FY21. He also said the government had factored in the need for an economic stimulus in the borrowing calculations.