The government is looking to raise Rs 8.88 lakh crore through borrowing in the first half (April-September) of 2023-24 to fund the revenue gap for pushing economic growth, the Finance Ministry said on Wednesday.
Out of the gross market borrowing of Rs 15.43 lakh crore estimated for FY24, Rs 8.88 lakh crore, or 57.5 per cent, is planned to be borrowed in the first half (H1), an official statement said. The borrowing is scheduled to be completed in 26 weekly tranches of Rs 31,000-Rs 39,000 crore. The borrowing will be spread under 3, 5, 7, 10, 14, 30 and 40-year securities, it said.
“The share of borrowing under different maturities will be: 3 year (6.31%), 5 year (11.71%), 7 year (10.25%), 10 year (20.50%), 14 year (17.57%), 30 year (16.10%) and 40 year (17.57%),” said government in a statement.
Indian government’s borrowing has more than doubled from 2019 levels, when Prime Minister Narendra Modi stormed to power for the second time in a row, as government’s social spending on free food and subsidies rose to record highs largely due to the pandemic.
The government plans to borrow Rs 4.16 lakh crore via treasury bills in the June quarter, the government said in the statement.
There will be no fresh issue of government green bonds in the first half of the financial year and these may be issued in the second half, it said.
The government said it will continue to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification.
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