MUMBAI: Govt plans to borrow Rs 7.5 lakh crore by way of public sale of bonds of between 3-year and 50-year maturities through the first half of the subsequent fiscal beginning April 1. This makes up about 53% of its FY25 borrowing target of Rs 14.1 lakh crore, a launch from the ministry of finance mentioned on Wednesday.
In addition, govt additionally plans to borrow Rs 49,000 crore by way of treasury payments of 91-day, 182-day and 364-day durations through the first quarter (April-June 2024) of FY25, the discharge mentioned.
Out of the budgeted gross market borrowing of Rs 14.13 lakh crore projected for FY25, Rs 7.5 lakh crore (53.1%) is deliberate to be borrowed in the primary half (H1) by way of dated securities, together with Rs 12,000 crore by way of issuance of sovereign inexperienced bonds (SGrBs), the discharge famous. “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 mentioned.
The share of borrowing (together with SGrBs) below totally different maturities shall 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 discharge from the ministry mentioned. “Govt will continue to carry out switching of securities to smoothen the redemption profile.”
Earlier, through the Budget, finance minister Nirmala Sitharaman had mentioned that govt would scale back the quantum of gross borrowing for FY25. This was aimed primarily at assembly the long-term fiscal deficit targets set throughout the Fiscal Responsibility & Budget Management (FRBM) Act.
In addition, govt additionally plans to borrow Rs 49,000 crore by way of treasury payments of 91-day, 182-day and 364-day durations through the first quarter (April-June 2024) of FY25, the discharge mentioned.
Out of the budgeted gross market borrowing of Rs 14.13 lakh crore projected for FY25, Rs 7.5 lakh crore (53.1%) is deliberate to be borrowed in the primary half (H1) by way of dated securities, together with Rs 12,000 crore by way of issuance of sovereign inexperienced bonds (SGrBs), the discharge famous. “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 mentioned.
The share of borrowing (together with SGrBs) below totally different maturities shall 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 discharge from the ministry mentioned. “Govt will continue to carry out switching of securities to smoothen the redemption profile.”
Earlier, through the Budget, finance minister Nirmala Sitharaman had mentioned that govt would scale back the quantum of gross borrowing for FY25. This was aimed primarily at assembly the long-term fiscal deficit targets set throughout the Fiscal Responsibility & Budget Management (FRBM) Act.
