Government plans to borrow Rs8.8 lakh crore in first half of fiscal year 2024

NEW DELHI: The Center intends to do so loan Rs 8.88 lakh crore via bonds off the market in the first six months of the fiscal year starting April 1, the finance ministry said in a statement on Wednesday.
The Centre’s indebtedness has more than doubled from 2019 levels, as government welfare spending on free food and benefits rose to record levels, largely due to the Covid pandemic.
From the gross market borrowing of Rs 15.43 lakh crore foreseen for fiscal year 2023-24 in the Union budget, it is planned to borrow Rs 8.88 lakh crore (57.55%) in 26 weekly tranches of Rs 31,000-39,000 crores.
The loan will be divided into 3, 5, 7, 10, 14, 30 and 40 year bonds. The share of loans with different maturities will be: 3 years (6.31%), 5 years (11.71%), 7 years (10.25%), 10 years (20.50%), 14 years (17, 57%), 30 years old (16.10% ) and 40 years old (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 the greenshoe option to hold an additional subscription of up to Rs 2,000 crore against each of the bonds set out in the auction notification.
Weekly loan through issuance of treasure Invoices in Q1 (Q1) of FY 2023-24 are expected to be Rs 32,000 crore with net borrowing of Rs 1.42 lakh crore during the quarter, versus net borrowing of Rs 2.40 lakh crore in Q1 of financial year 2022-23.
There will be issuance of Rs 12,000 crore under 91 DTB, Rs 12,000 crore under 182 DTB and Rs 8,000 crore under 364 DTB through each weekly auction to be conducted during the quarter.
To cater for temporary mismatches in the government account, the Reserve Bank of India has set the Ways and Mean Advances limit for the first half of FY 2023-24 at Rs 1,50,000 crore.
(With contributions from agencies)


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