Centre may not go for 60% borrowing in the first half of FY23

Rethink on proportion on back of Fed tightening, high oil prices

The finance ministry is in two minds on whether to go by the usual practice of borrowing around 60 per cent of its target in the first half of FY23, or make its debt calendar more backloaded, Business Standard has learnt.

Sources said with pulling back of liquidity by the US Federal Reserve (something other western central banks are expected to follow), and factoring in high global commodity prices and their possible impact on interest rates in India, the government and Reserve Bank of India (RBI) will have to carefully decide on their borrowing plans for April-September 2022.

“We will have to