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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 borrowing will be spread across various maturities ranging from 3 to 50 years, with 26 weekly auctions planned to complete the gross market borrowing of Rs 7.50 lakh crore.
- The government will continue to manage its securities to ensure a smooth redemption profile and retains the right to exercise the greenshoe option for additional subscriptions.
- Weekly borrowing through Treasury Bills in the first quarter of FY 2024-25 is expected to be Rs 27,000 crore for the initial seven auctions, with a net borrowing of Rs (-)3,000 crore during 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.
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.
