Govt plans to borrow 8.88 lakh crore in first half of FY2023-24

The government plans to borrow 8.88 lakh crore in the first half of FY 2023 -- 24. The borrowing plan was finalised by the government in consultation with the Reserve Bank of India. The Centre is projected to have a gross market borrowing of 15.32 lakh crore for FY 24, out of which 57.55 per cent is planned to be borrowed in H 1.

The Ministry of Finance stated that the borrowing is scheduled to be completed in 26 weekly tranches of Rs 31,000 -- 39,000 crore. Here is a lowdown on borrowing under different maturities:

The second half of the Sovereign Green Bonds will be announced. The ministry stated that they will continue to carry out switch operations to smoothen the redemption profile.

The Centre will retain an additional subscription of up to 2,000 crore on each of the securities indicated in the auction notification, and will continue to exercise the greenshoe option.

The weekly borrowing through issuance of treasury bills is expected to be Rs 32,000 crore in the first quarter of FY 24, with net borrowing of Rs 1.42 lakh crore during the quarter. In FY 23, the net borrowing was Rs 2.40 lakh crore.

The ministry stated that there will be issuance of Rs 12,000 crore under 91 DTBs, Rs 12,000 crore under 182 DTBs and Rs 8,000 crore under 364 DTBs through each weekly auction.

The Ways and Mean Advances WMA limit for H 1 of FY 2023 -- 24 has been fixed by the Reserve Bank of India to be fixed at Rs 1,50, 000 crore in order to manage temporary mismatches in government accounts.