Govt to borrow Rs 845 lakh crore from market during April-September period
New Delhi Mar 31 PTI The Union government is looking to raise Rs 845 lakh crore through borrowings in the first half of 2022-23 to fund the revenue gap for reviving the economy the finance ministry said on Thursday Out of the gross market borrowing of Rs 1431 lakh crore estimated for the next financial year Rs 845 lakh crore is planned to be borrowed in the first half or April-September period The government has front loaded its borrowing programme as the 60 per cent of the record borrowing planned for the financial year beginning April 1 would be complete in the first six months itself Front loading of borrowing will be done with the objective of pushing capital expenditure which will have a multiplier effect on the economy As per the Union Budget document the gross market borrowing through dated securities for 2022-23 will be Rs 1495000 crore Taking into account the switch operations conducted on January 28 2022 the gross market borrowing through dated securities for 2022-23 is expected at Rs 1431352 crore the ministry said in a statement The gross borrowing for 2021-22 was Rs 1205500 crore The borrowing is scheduled to be completed in 26 weekly tranches of Rs 32000-33000 crore the ministry said The borrowing will be spread under 2 5 7 10 14 30 and 40 year securities and Floating Rate Bonds FRBs of various tenors Long term securities including the 14 30 and 40 year ones will make up for a significant chunk of the borrowing FRBs of various tenors will be issued on a fortnightly basis The government will continue to carry out switching of securities to smoothen the redemptions the statement said adding that it may continue to exercise the greenshoe option to retain an additional subscription up to Rs 2000 crore against each of the securities indicated in the auction notification Weekly borrowing under treasury bills in the first quarter of 2022-23 is expected to be Rs 33000-34000 crore with net borrowing of Rs 240 lakh crore during the quarter There will also be an issuance of Rs 13000 crore under 91 DTBs Rs 12000-13000 crore under 182 DTBs and Rs 8000 crore under 364 DTBs in each auction to be held during the quarter To take care of the temporary mismatches in government account the statement said the Reserve Bank of India has fixed the Ways and Mean Advances WMA limit for H1 of FY23 at Rs 150000 crore The government and the RBI are working jointly to bring a framework for issuance of sovereign green bonds In her Union Budget speech Finance Minister Nirmala Sitharaman had announced that the government proposes to issue sovereign green bonds to mobilise resources for green infrastructure The net borrowing during 2022-23 would be Rs 116 lakh crore which is nearly Rs 2 lakh crore higher than the current years budget estimate of Rs 97 lakh crore Gross borrowing includes repayment of past loans The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills PTI DP RAM
New Delhi Mar 31 PTI The Union government is looking to raise Rs 845 lakh crore through borrowings in the first half of 2022-23 to fund the revenue gap for reviving the economy the finance ministry said on Thursday Out of the gross market borrowing of Rs 1431 lakh crore estimated for the next financial year Rs 845 lakh crore is planned to be borrowed in the first half or April-September period The government has front loaded its borrowing programme as the 60 per cent of the record borrowing planned for the financial year beginning April 1 would be complete in the first six months itself Front loading of borrowing will be done with the objective of pushing capital expenditure which will have a multiplier effect on the economy As per the Union Budget document the gross market borrowing through dated securities for 2022-23 will be Rs 1495000 crore Taking into account the switch operations conducted on January 28 2022 the gross market borrowing through dated securities for 2022-23 is expected at Rs 1431352 crore the ministry said in a statement The gross borrowing for 2021-22 was Rs 1205500 crore The borrowing is scheduled to be completed in 26 weekly tranches of Rs 32000-33000 crore the ministry said The borrowing will be spread under 2 5 7 10 14 30 and 40 year securities and Floating Rate Bonds FRBs of various tenors Long term securities including the 14 30 and 40 year ones will make up for a significant chunk of the borrowing FRBs of various tenors will be issued on a fortnightly basis The government will continue to carry out switching of securities to smoothen the redemptions the statement said adding that it may continue to exercise the greenshoe option to retain an additional subscription up to Rs 2000 crore against each of the securities indicated in the auction notification Weekly borrowing under treasury bills in the first quarter of 2022-23 is expected to be Rs 33000-34000 crore with net borrowing of Rs 240 lakh crore during the quarter There will also be an issuance of Rs 13000 crore under 91 DTBs Rs 12000-13000 crore under 182 DTBs and Rs 8000 crore under 364 DTBs in each auction to be held during the quarter To take care of the temporary mismatches in government account the statement said the Reserve Bank of India has fixed the Ways and Mean Advances WMA limit for H1 of FY23 at Rs 150000 crore The government and the RBI are working jointly to bring a framework for issuance of sovereign green bonds In her Union Budget speech Finance Minister Nirmala Sitharaman had announced that the government proposes to issue sovereign green bonds to mobilise resources for green infrastructure The net borrowing during 2022-23 would be Rs 116 lakh crore which is nearly Rs 2 lakh crore higher than the current years budget estimate of Rs 97 lakh crore Gross borrowing includes repayment of past loans The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills PTI DP RAM
