Centre’s gross market borrowing hits Rs 5.77 lakh cr until July this fiscal: FM

economictimes.indiatimes.com:

government has raised more than 37% of its FY24 target of gross market borrowing through dated securities in the first four months, finance minister Nirmala Sitharaman informed Parliament on Tuesday. It has mobilised gross and net borrowing amount of Rs 5.77 lakh crore and Rs 4.18 lakh crore, respectively, through dated securities up to July 31 this fiscal, the minister said in a reply in the Rajya Sabha. The net borrowing (through dated papers alone) was over 35% of the FY24 target until end-July.

The government has planned to raise total net debt resources of Rs 17.99 lakh crore from various sources in FY24 mainly to finance its fiscal deficit, which is pegged at Rs 17.87 lakh crore, she said. This amount is about 40% of the total net size of the Budget for FY24, which stood at Rs 45.03 lakh crore. The total net borrowing of the Centre includes resources mopped up through both short-term and long-term securities, external loans, offtake from the National Small Savings Fund and state provident fund, and other sources.

Market borrowing through dated securities will contribute to almost 66% of the proposed net borrowing resources in the current fiscal year. The central government has already said it will borrow Rs 8.88 lakh crore from the market through dated securities in the first half of FY24, which constitutes 57.6% of the full-year target. It’s lower than the usual borrowing level of roughly 60% in the first half of a fiscal year.