The government's aggregate receipts and expenditures are on track and in line with budgetary estimates, raising hope of meeting the fiscal deficit target, according to an Indian official with knowledge of the matter.
India's fiscal deficit target is set at 5.9% of the gross domestic product for the current financial year.
The government aims to spend Rs 45 lakh crore this fiscal, with Rs 10 lakh crore outlined for capital expenditure, a 33% increase from the last fiscal. Revenue receipts for 2023–24 are pegged at Rs 26 lakh crore.
Around 40% of the planned capital expenditure has been frontloaded as of early September, the above-mentioned official said on the condition of anonymity. As of July, the capex came up to Rs 3.17 lakh crore or around 32% of the Rs 10 lakh crore target.
In order to finance a fiscal deficit of Rs 17.87 lakh crore, or 5.9% of the GDP, the government's gross borrowings were announced at Rs 15.4 lakh crore. It released its October–March borrowing calendar for the fiscal on Tuesday, aiming to raise the balance of Rs 6.55 lakh crore through dated securities. As much as Rs 8.88 lakh crore worth of borrowings were announced for the period ranging from April to September.
Net borrowings for the second half are likely to be around Rs 3.7 lakh crore, the official said.
Better 'Greemium'
The government is also on the lookout for a better "greemium" on its green securities this fiscal, backed by the strength of green investments lined up, the official said.
It plans to raise Rs 20,000 crore through sovereign green bonds in the fiscal, with the maiden issue last year raising Rs 16,000 crore.
Treasury Bills
The government looks to raise Rs 7,000 crore from the issue of 91-day Treasury bills, Rs 8,000 crore from 182-day Treasury bills, and Rs 9,000 crore from 364-day Treasury bills, according to the Treasury bill auction calendar released for the December quarter.
The lower issue of 91-day Treasury bills is aimed at having predictability over the redemption levels in the last quarter and keeping gross borrowing levels in check, the above-mentioned official said.
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