Story behind smooth sailing of govt borrowing

Will the dream run continue in the second half of the year too, spreading cheers to the treasury floors and adding to banks' profits?

It has been smooth sailing for record high borrowing of the Indian government in FY2023 so far. Till the last week (September 16), the government has raised Rs 7.72 trillion without any hiccups. Net of redemptions, the net borrowing has been Rs 4.39 crore.

Going by the schedule, the government is set to borrow Rs 8.45 crore in the first of the current financial year, ending in September. Out of this, only Rs 7,000 crore auction of a floating rate bond has been cancelled.

To get a sense of how large the borrowing programme this year is, let’s take a look at