The central government will borrow Rs 6.61 lakh crore from the market in the second half

Government Borrowing Plan: The central government will raise a loan of Rs 6.61 lakh crore during the second half of the financial year 2024-25 to bridge the gap between income and expenditure. The Finance Ministry said that the central government, in consultation with the banking sector regulator Reserve Bank of India, has finalized the borrowing program for the second half of the current financial year.

The Ministry of Finance said that in the financial year 2024-25, the government has set a target of raising a total loan of Rs 14.01 lakh crore, out of which Rs 6.61 lakh crore, which is 47.2 percent of the total loan to be raised, will be raised in the second half of the financial year through dated securities, which also includes Sovereign Green Bonds worth Rs 20,000 crore.

The Finance Ministry said, Rs 6.61 lakh crore will be raised through 21 weekly auctions. The government will raise the money in collaboration with the RBI by issuing securities of three, five, seven, 10, 15, 30, 40 and 50 years. Among these, the share of debt with a maturity period of three years will be the lowest at 5.3 percent, while the share of securities with a maturity period of 10 years will be the highest at 24.8 percent. The ministry said that there will be a greenshoe option to maintain additional subscription of Rs 2,000 crore for each of the securities mentioned in the auction notifications.

The government has set a target of raising a loan of Rs 14.01 lakh crore during the current financial year, which was announced while presenting the full budget. Whereas in the interim budget, a target of raising Rs 14.13 lakh crore during the financial year was set. In the financial year 2023-24, the government had raised a loan of Rs 15.43 lakh crore. That is, the government is borrowing 9 percent less in the current financial year than the previous financial year. This will help in keeping the fiscal deficit low. The government has set a target of 4.9 percent fiscal deficit which is less than the 5.1 percent target of the interim budget. The biggest help to the government in this was given by the RBI, which has given a dividend of Rs 2.1 lakh crore to the government.

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