NEW DELHI: The Centre plans to borrow Rs 8.88 lakh crore via bonds from the market in the first six months of the fiscal year starting on April 1, the finance ministry said in a release on Wednesday.
The Centre’s borrowing has more than doubled from 2019 levels as the government’s social spending on free food and subsidies rose to record highs largely due to the Covid pandemic.
Out of the Gross Market borrowing of Rs 15.43 lakh crore projected for FY 2023-24 in the Union budget, Rs 8.88 lakh crore (57.55%) is planned to be borrowed in 26 weekly tranches of Rs 31,000-39,000 crore.
The borrowing will be spread under 3, 5, 7, 10, 14, 30 and 40 year securities. The share of borrowing under different maturities will be: 3 year (6.31%), 5 year (11.71%), 7 year (10.25%), 10 year (20.50%), 14 year (17.57%), 30 year (16.10%) and 40 year (17.57%).
The issuance of Sovereign Green Bonds will be announced in the second half of FY 2023-24.
The Government will continue to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification.
Weekly borrowing through issuance of Treasury Bills in the first quarter (Q1) of FY 2023-24 is expected to be Rs 32,000 crore with net borrowing of Rs 1.42 lakh crore during the quarter, against net borrowing of Rs 2.40 lakh crore in Q1 of FY 2022-23.
There will be issuance of Rs 12,000 crore under 91 DTBs, Rs 12,000 crore under 182 DTBs and Rs 8,000 crore under 364 DTBs through each weekly auction to be conducted during the quarter.
To take care of temporary mismatches in government account, the Reserve Bank of India has fixed the Ways and Mean Advances limit for H1 of FY 2023-24 at Rs 1,50,000 crore.
(With inputs from agencies)
The Centre’s borrowing has more than doubled from 2019 levels as the government’s social spending on free food and subsidies rose to record highs largely due to the Covid pandemic.
Out of the Gross Market borrowing of Rs 15.43 lakh crore projected for FY 2023-24 in the Union budget, Rs 8.88 lakh crore (57.55%) is planned to be borrowed in 26 weekly tranches of Rs 31,000-39,000 crore.
The borrowing will be spread under 3, 5, 7, 10, 14, 30 and 40 year securities. The share of borrowing under different maturities will be: 3 year (6.31%), 5 year (11.71%), 7 year (10.25%), 10 year (20.50%), 14 year (17.57%), 30 year (16.10%) and 40 year (17.57%).
The issuance of Sovereign Green Bonds will be announced in the second half of FY 2023-24.
The Government will continue to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification.
Weekly borrowing through issuance of Treasury Bills in the first quarter (Q1) of FY 2023-24 is expected to be Rs 32,000 crore with net borrowing of Rs 1.42 lakh crore during the quarter, against net borrowing of Rs 2.40 lakh crore in Q1 of FY 2022-23.
There will be issuance of Rs 12,000 crore under 91 DTBs, Rs 12,000 crore under 182 DTBs and Rs 8,000 crore under 364 DTBs through each weekly auction to be conducted during the quarter.
To take care of temporary mismatches in government account, the Reserve Bank of India has fixed the Ways and Mean Advances limit for H1 of FY 2023-24 at Rs 1,50,000 crore.
(With inputs from agencies)
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