IANS | 28 Mar, 2024
Out of Gross Market borrowing of Rs 14.13 lakh crore projected in the
Union budget for FY 2024-25, the government has decided to borrow Rs
7.50 lakh crore (53.08 per cent) in the first half (H1) of the year
(April-Sept) through dated securities, the Finance Ministry said on
Wednesday.
As much Rs 12,000 crore of this amount is proposed to be raised
through the issuance of Sovereign Green Bonds (SGrBs). It has also been
decided to introduce a new dated security of 15-year tenor based on
market feedback and in line with global market practices.
The Finance Ministry said that the borrowing programme has been finalised in consultation with the Reserve Bank of India.
The
gross market borrowing of Rs 7.50 lakh crore shall be completed through
26 weekly auctions. The market borrowing will be spread over 3, 5, 7,
10, 15, 30, 40 and 50-year securities.
The share of borrowing
(including SGrBs) under different maturities will be: 3-year (4.80 per
cent), 5-year (9.60 per cent), 7-year (8.80 per cent), 10-year (25.60
per cent), 15-year (13.87 per cent), 30-year (8.93 per cent), 40-year
(19.47 per cent) and 50-year (8.93 per cent).
The government will continue to carry out the switching of securities to smoothen the redemption profile.
The
government will continue to reserve the right to exercise the greenshoe
option to retain an additional subscription of up to Rs 2,000 crore
against each of the securities indicated in the auction notifications.
Weekly
borrowing through issuance of Treasury Bills in the first quarter (Q1)
of FY 2024-25 is expected to be Rs 27,000 crore for the first seven
auctions and Rs 22,000 crore for the subsequent six auctions with net
borrowing of Rs (-)3,000 crore during the quarter.
There will be
weekly issuance of Rs 12,000 crore under 91 DTBs, Rs 7,000 crore under
182 DTBs and Rs 8,000 crore under 364 DTBs in the first seven auctions
and weekly issuance of Rs 10,000 crore under 91 DTBs, Rs 5,000 crore
under 182 DTBs and Rs 7,000 crore under 364 DTBs in subsequent six
auctions to be conducted during the quarter.
To take care of
temporary mismatches in Government accounts, the Reserve Bank of India
has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2024-25 at
Rs 1.50 lakh crore.