Full formGovernment & Exams
EBBstands forExtra Budgetary Borrowing
Full Form of EBB
What is EBB?
Extra Budgetary Borrowing (EBB) refers to borrowings undertaken by government-owned entities, public sector undertakings, or special purpose vehicles that are not included in the formal Union or State Budget but are guaranteed by the government. In India, EBB is used to finance large infrastructure projects, social programs, or meet fiscal targets without directly increasing the reported fiscal deficit. These borrowings are serviced through future budgets or internal revenues of the borrowing entity, making them a form of off-budget liability. The practice gained prominence in India as a tool to manage fiscal consolidation while enabling capital expenditure. EBB is discussed in the annual Budget documents, reports of the Comptroller and Auditor General (CAG), and fiscal policy analyses by the Reserve Bank of India (RBI). It is particularly relevant for state governments and central public sector enterprises. For civil services examinations like UPSC, RBI Grade B, and NABARD, understanding EBB is crucial for questions on fiscal policy, public debt management, and transparency in government accounts. Critics argue that EBB obscures the true extent of government borrowing and can lead to hidden fiscal risks, prompting calls for greater disclosure and inclusion in budget reporting.
EBB का फुल फॉर्म
अतिरिक्त बजटीय उधारी
Example
The government's reliance on Extra Budgetary Borrowing through entities like NHAI has raised concerns about the true size of the fiscal deficit.
EBB — frequently asked questions
What is the full form of EBB?
The full form of EBB is Extra Budgetary Borrowing, which refers to borrowings by government-owned entities that are not part of the formal budget but are guaranteed by the government.
How does EBB affect India's fiscal deficit?
EBB allows the government to keep the reported fiscal deficit lower by moving borrowings off the budget, but these liabilities eventually need to be serviced, potentially increasing future fiscal burdens.
Is EBB included in the Union Budget of India?
No, EBB is not included in the formal Union Budget. It is disclosed separately in budget documents as a memorandum item or in the Finance Minister's speech to ensure transparency.