Modi government to finish 59% of Rs 6 lakh crore-borrowing budgeted for FY17 in first half

NEW DELHI: The government will complete almost 60% of its budgeted Rs 6 lakh crore total borrowing for the next fiscal in the first half itself, according to the borrowing calendar released on Friday.

Total borrowings for April-September are pegged at Rs 3.55 lakh crore, 59% of the gross borrowing budgeted for 2016-17. The net borrowing in the first half will be only Rs 2.48 lakh crore considering the repayments of Rs 1.07 lakh crore.

The budget for FY17 has provided for gross market borrowing of Rs 6 lakh crore and net borrowing at Rs 4.2 lakh crore.

The government has also decided to set up a Cash Coordination Committee under chairmanship of joint secretary (budget) comprising officers from the finance ministry, Reserve Bank of India and Controller General of Accounts. "The committee will 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," economic affairs secretary Shaktikanta Das said.

The central government will conduct 24 auctions in the first half of 2016-17, he said. "In the first three-four months, the auction size will be about Rs 15,000 crore per auction and in last twothree months the auction size will be Rs 14,000 crore," Das said.

The borrowing through gold bonds will be decided on the basis of 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 said. The calendar for market borrowing was decided at a meeting of officials of the finance ministry and RBI.