Govt to borrow 2.87 lakh cr in H1

The government will borrow Rs 2.87 lakh crore (Rs 2.87 trillion) from the markets in the first half of the next fiscal, which is about 63 per cent of the total gross borrowing requirement for 2010-11.

The borrowing in the first half of the next fiscal will be less front-loaded (borrowing in tranches) than the similar period of the outgoing fiscal because access to overseas borrowings will be lot more improved next fiscal, finance secretary Ashok Chawla told reporters here today after a meeting with the Reserve Bank of India

"This year in the first half, 73 per cent of the total borrowing was mopped up. So, in the first half of the next fiscal, it is slightly on the lower side. We expect, based on the inflow and outflow trends in the economy and the fact that corporates and institutions will have good access to external commercial borrowings," Chawla said.

To a query whether government borrowings will be smooth, RBI deputy governor Shyamala Gopinath said it is always the endeavour.

The government will borrow in tranches of Rs 11,000-15,000 crore (Rs 110-150 billion) every week in April through September depending on repayment of earlier bonds.

 

[Dhruv Bindhani]

The government will borrow Rs 2.87 lakh crore (Rs 2.87 trillion) from the markets in the first half of the next fiscal, which is about 63 per cent of the total gross borrowing requirement for 2010-11.

The borrowing in the first half of the next fiscal will be less front-loaded (borrowing in tranches) than the similar period of the outgoing fiscal because access to overseas borrowings will be lot more improved next fiscal, finance secretary Ashok Chawla told reporters here today after a meeting with the Reserve Bank of India

"This year in the first half, 73 per cent of the total borrowing was mopped up. So, in the first half of the next fiscal, it is slightly on the lower side. We expect, based on the inflow and outflow trends in the economy and the fact that corporates and institutions will have good access to external commercial borrowings," Chawla said.

To a query whether government borrowings will be smooth, RBI deputy governor Shyamala Gopinath said it is always the endeavour.

The government will borrow in tranches of Rs 11,000-15,000 crore (Rs 110-150 billion) every week in April through September depending on repayment of earlier bonds.

 

[Simran Rai]

The Government of India plans to borrow ₹2.87 lakh crore (₹2.87 trillion) from the market in the first half of the 2010–11 financial year, which accounts for about 63% of its total gross borrowing requirement for the year. Compared to the current fiscal, the borrowing plan for the next year will be slightly less front-loaded, meaning the government will spread out its borrowing more evenly over the year rather than concentrating it in the initial months. According to Finance Secretary Ashok Chawla, this adjustment is possible because corporates and institutions are expected to have better access to external commercial borrowings in the coming fiscal year, which will ease pressure on domestic sources. In the current fiscal, nearly 73% of the borrowing was completed in the first half, whereas next year’s plan reflects a more balanced approach. The Reserve Bank of India (RBI), which manages the borrowing programme, will issue bonds in weekly tranches of ₹11,000–15,000 crore (₹110–150 billion) between April and September. The size and frequency of these borrowings will also depend on the schedule of previous bond repayments. When asked if the borrowing process will be smooth, RBI Deputy Governor Shyamala Gopinath stated that ensuring a smooth borrowing programme is always a key objective. The borrowing strategy aims to manage government financing needs while supporting economic stability and keeping in mind liquidity trends and market conditions. By moderating the pace of borrowing and factoring in improved access to foreign capital, the government hopes to reduce pressure on domestic interest rates and financial markets during the first half of the fiscal year.​