The Government of India has outlined its borrowing plan for the first half of the fiscal year 2024-25.
Aiming to raise a substantial amount from the market to meet financial needs and support economic growth. Here are the key points:
- The government plans to borrow Rs 7.50 lakh crore in the first half, which constitutes 53.08% of the total borrowing target for the fiscal year.
- This borrowing will be conducted through dated securities, including the issuance of Sovereign Green Bonds (SGrBs) amounting to Rs 12,000 crore, with the introduction of a new 15-year tenor security.
- The government plans to complete the gross market borrowing of Rs 7.50 lakh crore by holding 26 weekly auctions. Spreading the borrowing across various maturities ranging from 3 to 50 years.
- The government will continue to manage its securities to ensure a smooth redemption profile. Retain the right to exercise the greenshoe option for additional subscriptions.
- In the first quarter of FY 2024-25, the government plans to borrow Rs 27,000 crore weekly. Through Treasury Bills for the initial seven auctions, with a net borrowing of Rs (-)3,000 crore for the quarter.
- To address temporary mismatches in government accounts. The Reserve Bank of India has set the Ways and Means Advances (WMA) limit for the first half of FY 2024-25 at Rs 1.50 lakh crore.
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The government’s borrowing strategy for the first half of FY 2024-25 involves a well-structured approach to meet financial requirements. Introduce new securities and ensure efficient market operations.
