The Finance Ministry revealed that the government plans to borrow Rs 7.50 lakh crore in the first half of FY25, constituting 53 per cent of its annual target. This gross market borrowing will be completed through 26 weekly auctions.
Finance Minister Nirmala Sitharaman proposed a borrowing of Rs 14.13 lakh crore in the interim Budget to address revenue shortfalls.
” Out of Gross Market borrowing of Rs 14.13 lakh crore projected for FY 2024-25 in the Union budget, Rs 7.50 lakh crore (53.08%) is planned to be borrowed in the first half (H1) through dated securities,” the finance ministry said in a release.
The first half borrowing will include Rs 12,000 crore through Sovereign Green Bonds and introduce a new 15-year tenor security.
The government aims to manage borrowing and debt effectively by continuing to switch securities for smoother redemption and retaining the greenshoe option for additional subscription.
Weekly borrowing projections for Q1 of FY 2024-25 foresee Rs 27,000 crore for the initial seven auctions and Rs 22,000 crore for the subsequent six auctions, with an expected net borrowing of Rs (-)3,000 crore during the quarter.
The Ministry of Finance also released an indicative calendar for the issuance of Government dated securities, including Sovereign Green Bonds, for H1 FY25, aiming to enhance transparency and stability in the Government Securities market. Additionally, it maintains the right to exercise the greenshoe option for each security listed in auction notifications.
