Market borrowing target cut by Rs 10,000 crore in FY23

A day after the government released Rs 44,762 crore for free rations to poor, the government has cut its market borrowing target for the current fiscal by Rs 10,000 crore in signs of buoyant tax collections. The finance ministry said the government will do total borrowing of Rs 5.92 lakh crore during the October-March period, including from the issuance of its maiden Sovereign Green Bonds of Rs 16,000 crore. The government had projected a gross market borrowing of 14.31 lakh crore in the budget for 2022 -- 23. During 2022 -- 23 the government decided to borrow Rs 14.21 lakh crore. The balance amount of Rs 5.92 lakh crore 41.7 per cent of Rs 14.21 lakh crore is expected to be borrowed through the second half of the fiscal year 2022 -- 23 through dated securities, including Rs 16,000 crore through the issuance of Sovereign Green Bonds SGrBs as per the announcement in the Union Budget 2022 -- 23. The government will retain a greenshoe option to keep up to Rs 2,000 crore for each of the securities indicated in the auction notification. The amount raised through this option will be limited to 3 to 5 percent of the gross issuance for the second half and within the gross borrowing limit for the 2022 -- 23. The gross direct tax collections rose by 30 per cent to over 8.36 lakh crore on September 17.