RBI and Finance Ministry to meet to decide on First Half Borrowing Plan
The Finance Ministry and the Reserve Bank of India is to hold a meeting on March 31, 2020 to discuss about the first half borrowing plan for the year 2020-21. For the first time in Indian history, the meeting is to be held through video conferencing.
According to the Union Budget 2020-21, the GoI plans to borrow Rs 5.36 lakh crore rupees. This is higher than last year borrowing which was Rs 4.99 lakh crore. With this, the gross borrowing is to become Rs 7.8 trillion. GoI has planned repayment of loans at Rs 2.35 trillion.
There are several components of debts of India. The borrowings are mainly accounted as external debt of the country. The external debt of India as of December 2018 is 521 billion USD. This includes money borrowed from international financial institutions, commercial banks, IMF, World Bank, Asian Development Bank, foreign governments, etc.
India’s debts are held in different currencies. 48.2% of the country’s debts are held in dollar, 4.6% as Japanese Yen, 5.7% as Special Drawing Rights, 3.2% in Euros.
Category: Economy & Banking Current Affairs