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Centre plans to raise Rs 7.5 lakh crore through market borrowing in H1FY25
Mar-28-2024

The Finance Ministry has said that the Centre plans to raise Rs 7.5 lakh crore through market borrowing in the April-September period of 2024-25 (H1FY25) to fund the revenue gap. In the next financial year (FY25), the government plans to borrow a total of Rs 14.13 lakh crore. The fundraise would be done through dated securities, including Rs 12,000 crore through issuance of sovereign green bonds (SGBs). 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.

The ministry said the gross market borrowing of Rs 7.5 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over three, five, seven, 10, 15, 30, 40, and 50-year securities. The share of borrowing (including SGBs) under different maturities will be: 3-year (4.8 per cent), 5-year (9.60 per cent), 7-year (8.8 per cent), 10-year (25.6 per cent), 15-year (13.87 per cent), 30-year (8.93 per cent), 40-year (19.47 per cent) and 50-year (8.93 per cent). 

It further said that the government will continue to carry out switching of securities to smoothen the redemption profile. The government will continue to reserve the right 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 notifications. Weekly borrowing through the issuance of Treasury Bills in the first quarter of FY25 is expected to be Rs 27,000 crore for the first seven auctions and Rs 22,000 crore for the subsequent six auctions.


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