Questions about borrowing

The funding need can change materially

The government announced its borrowing plans for the first half of the financial year on Tuesday. It intends to sell bonds worth Rs 4.9 trillion in the first half of 2020-21, which is 62.5 per cent of the full-year borrowing target — broadly in keeping with its schedule last fiscal year. It would be interesting to see how the bond market reacts in the coming days. Given the economic situation and its potential impact on the fiscal position, the government’s borrowing needs may change significantly. It is possible that some concerns will build up, particularly on matters of transparency. After