Government to Borrow ₹11.7 Lakh Crore in FY27, Lower Than Current Year

• Government aims to raise ₹11.7 lakh crore through borrowing in FY27 to manage fiscal deficit.
• This borrowing target is 4.3% of GDP, announced by Finance Minister Nirmala Sitharaman.
• The FY27 borrowing is significantly lower than the ₹14.82 lakh crore estimated for the current fiscal year.
• Government borrowing directly influences market interest rates, with lower borrowing potentially reducing rates.
• Moneycontrol poll suggests total market borrowing could be ₹15-17 lakh crore in FY27 due to redemptions, despite government's fiscal consolidation focus.

Why It Matters: Government plans reduced borrowing of ₹11.7 lakh crore in FY27, impacting market interest rates.