Govt unlikely to raise FY24 borrowing plan; bond yields may remain below 7%

Railways, NHAI asked not to borrow from market

The Centre is unlikely to increase its borrowing plans for fiscal year 2023-24 (FY24) and expects bond yields to remain below 7 per cent.

A senior finance ministry official said the pressure on the bond market was also likely to wane as the Railways and the National Highways Authority of India (NHAI) have been told not to borrow from the market.

The government has planned to borrow Rs 15.43 trillion from the markets in FY24 to finance its fiscal deficit. If yields remain under check, then the government’s liability towards interest payment can also come down that helps in curbing