Off-Budget Borrowings

One of the most sought-after details in any Union Budget is the level of fiscal deficit. Fiscal deficit is essentially the gap between what the central government spends and what it earns. In other words, it is the level of borrowings by the Union government.

• It is keenly watched by rating agencies — both inside and outside the country. That is why most governments want to restrict their fiscal deficit to a respectable number.
• One of the ways to do this is by resorting to off-budget borrowings.

About Off-budget Borrowings

• Also known as extra budget borrowings, these are loans that are taken ....