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MUMBAI: Govt plans to borrow Rs 7.5 lakh crore through auction of bonds of between 3-year and 50-year maturities during the first half of the next fiscal starting April 1. This makes up about 53% of its FY25 borrowing target of Rs 14.1 lakh crore, a release from the ministry of finance said on Wednesday.
In addition, govt also plans to borrow Rs 49,000 crore through treasury bills of 91-day, 182-day and 364-day durations during the first quarter (April-June 2024) of FY25, the release said.
Out of the budgeted gross market borrowing of Rs 14.13 lakh crore projected for FY25, Rs 7.5 lakh crore (53.1%) is planned to be borrowed in the first half (H1) through dated securities, including Rs 12,000 crore through issuance of sovereign green bonds (SGrBs), the release noted. “Based on market feedback and in line with global market practices, it has been decided to introduce a new dated security of 15-year tenor,” it said.
The share of borrowing (including SGrBs) under different maturities will be: 3-year (4.8%), 5-year (9.6%), 7-year (8.8%), 10-year (25.6%), 15-year (13.9%), 30-year (8.9%), 40-year (19.5%) and 50-year (8.9%), the release from the ministry said. “Govt will continue to carry out switching of securities to smoothen the redemption profile.”
Earlier, during the Budget, finance minister Nirmala Sitharaman had said that govt would reduce the quantum of gross borrowing for FY25. This was aimed mainly at meeting the long-term fiscal deficit targets set within the Fiscal Responsibility & Budget Management (FRBM) Act.
In addition, govt also plans to borrow Rs 49,000 crore through treasury bills of 91-day, 182-day and 364-day durations during the first quarter (April-June 2024) of FY25, the release said.
Out of the budgeted gross market borrowing of Rs 14.13 lakh crore projected for FY25, Rs 7.5 lakh crore (53.1%) is planned to be borrowed in the first half (H1) through dated securities, including Rs 12,000 crore through issuance of sovereign green bonds (SGrBs), the release noted. “Based on market feedback and in line with global market practices, it has been decided to introduce a new dated security of 15-year tenor,” it said.
The share of borrowing (including SGrBs) under different maturities will be: 3-year (4.8%), 5-year (9.6%), 7-year (8.8%), 10-year (25.6%), 15-year (13.9%), 30-year (8.9%), 40-year (19.5%) and 50-year (8.9%), the release from the ministry said. “Govt will continue to carry out switching of securities to smoothen the redemption profile.”
Earlier, during the Budget, finance minister Nirmala Sitharaman had said that govt would reduce the quantum of gross borrowing for FY25. This was aimed mainly at meeting the long-term fiscal deficit targets set within the Fiscal Responsibility & Budget Management (FRBM) Act.
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