 "Gross market borrowing for H2 to be Rs 6.55 trn, 50-yr bond to be issued")
The government on Tuesday said it will borrow Rs 6.55 trillion in the second half of 2023-24 through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs).
The government meets its fiscal deficit mainly through market borrowings.
The government had projected gross market borrowing of Rs 15.43 trillion for 2023-24.
"...the Government of India has decided to borrow the balance amount of Rs 6.55 trillion (42.45 per cent of Rs 15.43 trillion) in the second half of the fiscal year 2023-24 through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs)," the finance ministry said in a statement.
"Responding to market demand for longer duration securities, 50-year security will be issued for the first time," it added.
The gross market borrowing of Rs 6.55 trillion will be completed through 20 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 14, 30, 40 and 50-year securities.
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The government will continue to carry out the switching of securities to smoothen the redemption profile.
Out of the Rs 1,00,000 crore of budgeted (BE) switch amount, Rs 51,597 crore of switch auctions have already been conducted and the balance amount of switch auctions will be conducted in the second half, it added.
Further, the government will continue to exercise the 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 the issuance of Treasury Bills in the third quarter of the fiscal is expected to be Rs 24,000 crore with net borrowing of Rs (-)52,000 crore during the quarter.
The ministry said that the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for the October-March period of 2023-24 at Rs 50,000 crore to take care of temporary mismatches in Government accounts.