Government to borrow 3.55 trilion rupees via bonds in April-September

NEW DELHI: Government will borrow Rs 3.55 lakh crore from the market during April-September, which is 59 per cent of the total gross borrowing pegged for fiscal 2017.

Economic Affairs Secretary Shaktikanta Das has said the gross borrowing for the first half of the next fiscal has been pegged at Rs 3.55 lakh crore.
Taking into account the repayments of Rs 1.07 lakh crore, the net borrowing in the first half would be Rs 2.48 lakh crore.

In the Budget, the government has pegged gross market borrowing for 2016-17 at Rs 6 lakh crore and net borrowing at Rs 4.2 lakh crore. The government borrows money from the markets through T-bills and other instruments to fund its deficit.

Further, the government has decided to set up a Cash Coordination Committee under chairmanship of Joint Secretary (Budget) comprising officers from Finance Ministry, RBI and CGA.

"The committee would meet at least once a month and review the cash position of the government and will ensure coordination and joint review by finance ministry and RBI beginning April 1," Das said.

Giving details of the borrowing programme for 2016-17, he said the central government would conduct 24 auctions in the first half.

"In first 3-4 months, the auction size will be about Rs 15,000 crore per auction and in last 2-3 months the auction size will be Rs 14,000 crore," Das said. As regards Treasury Bills, the government will borrow Rs 27,000 crore in April-June.

The borrowing through gold bonds would be decided based on market requirements.

"We will be issuing Gold bonds from time to time and as and when we issue we will adjust it against our borrowing calendar. The second half calendar is yet to be decided. So we will be adjusting perhaps in second half," Das added.

The calendar for market borrowing was decided at a meeting between officials of the Finance Ministry and Reserve Bank (RBI).