Budget 2020: Off-budget borrowing sees sharp jump, led by state-run companies

NEW DELHI : There has been a 17% increase in off-budget borrowings such as internal and extra-budgetary resources (IEBR) for the 2019-20 financial year. This was primarily done by state-run firms to fund the Union government’s programmes and for raising resources to acquire other state-owned firms, thus contributing to disinvestment proceeds.

This has come against the backdrop of the government pitching for an aggressive disinvestment of central public sector enterprises (CPSEs) in the next financial year, for which the disinvestment target has been set at ₹2.1 trillion.

The total IEBR, including that of the railway ministry, in 2019-20 was nearly ₹7.1 trillion as compared to ₹6.07trillion raised in 2018-19, according to budget documents.