Government To Borrow Rs 6.55 Lakh Crore In Second Half, Sticks To FY24 Plan

The gross market borrowing of Rs 6.55 lakh crore will be completed through 20 weekly auctions, the ministry said.

"The government will continue to carry out switching of securities to smoothen the redemption profile. Out of the Rs 1 lakh crore of budgeted (BE) switch amount, Rs 51,597 crore of switch auctions have already been conducted and the balance amount of switch auctions will be conducted in H2," it said.

The government notified that it will continue 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 notification.

Through treasury bills, weekly borrowing in the third quarter is expected to be Rs 24,000 crore with net borrowing of Rs -52,000 lakh crore during the quarter.

Of this, Rs 7,000 crore will issued as 91-day treasury bills, Rs 8,000 crore under 182-day treasury bills and Rs 9,000 crore under 364-day treasury bills in each auction to be conducted during the quarter.

To account for temporary mismatches in government accounts, the Reserve Bank of India has fixed the ways and mean advances limit for the second half at Rs 50,000 crore.