Centre to borrow ₹5.92 lakh cr in H2 FY23

The finance ministry on Thursday said the Centre will borrow ₹5.92 lakh crore in the second half of the fiscal. The government of India, in consultation with the Reserve Bank of India, has finalised its borrowing programme for the second half (H2) of the financial year 2022-23, the ministry of finance said.

“Out of the gross market borrowing of ₹14.31 lakh crore projected for 2022-23, the government has decided to borrow ₹14.21 lakh crore during the 2022-23. Accordingly, the balance amount of ₹5.92 lakh crore (41.7% of ₹14.21 lakh crore) is planned to be borrowed in the second half of the fiscal through dated securities,” the ministry said in a release.

The dated securities will include ₹16,000 crore Sovereign Green Bonds (SGrBs) as per the announcement made in budget, the ministry added. Finance ministry will announce the details of the sovereign green bonds separately.  

“The gross market borrowing of ₹5.76 lakh crore (40.5%) shall be completed through 20 weekly auctions. The market borrowing will be spread over two, five, seven, ten, fourteen, thirty and forty years securities. The share of borrowing (excluding SGrB) under different maturities will be: two year (6.25%), five year (12.15%), seven year (10.42%), ten year (20.83%), fourteen year (19.10%), thirty year (15.63%) and forty year (15.63%),” the ministry said in the release.

“Government will continue to carry out switch operations to smoothen the redemption profile. Out of the ₹1,00,000 crore of budgeted (BE) Switch amount, ₹56,103 crore of switch auctions have already been conducted  and the balance amount of switch auctions will be conducted in H2,” it added.