Govt hikes borrowing limit by over 50% to Rs 12 trn as virus grips economy

Sources say the Centre has asked RBI to do whatever to keep yields in check, which may result in massive secondary market bond purchases

The government on Friday steeply revised its 2020-21 borrowing programme by 53.85 per cent to Rs 12 trillion from Rs 7.8 trillion estimated earlier, indicating that the Centre was giving shape to an imminent and sizeable fiscal package to address the Covid-19-related slowdown. “The above revision in borrowings has been necessitated on account of the Covid-19 pandemic,” the Reserve Bank of India (RBI) said in a statement on its website.
 

Between May 11 and September 30, the government will borrow Rs 6 trillion from the market. The original plan, as announced on March 31, was that the borrowing in the