Centre to borrow ₹8.45 lakh cr in H1 FY23

The central government will borrow ₹8.45 lakh crore the first half of 2022-23, the finance ministry said on Thursday.

“Out of gross market borrowing of ₹14.31 lakh crore estimated for 2022-23, ₹8.45 lakh crore is planned to be borrowed in the first half (H1),” the ministry said in a release.

“The borrowing is scheduled to be completed in 26 weekly tranches of ₹32,000-33,000 crore. The borrowing will be spread under 2, 5, 7, 10, 14, 30 and 40 year securities and floating rate bonds of various tenors,” the release added.

Two-year maturity bonds will make up 6.15% of the borrowing, while 13.85% of the borrowing will be through five-year bonds. 10.77% borrowing will be via seven-year bonds and 20% via ten-year bond. 15.98% of the borrowing will be through bonds maturing in 14 years, 13.25% through bonds maturing in thirty years and 13.85% via those maturing in forty years.

“The government will continue to carry out switching of securities to smoothen the redemptions. The government may continue to exercise greenshoe option to retain an additional subscription upto ₹2,000 crore against each of the securities indicated in the auction notification,” the ministry said.

“The Government of India and the Reserve Bank of India are working jointly in bringing out a framework for issuance of Sovereign Green Bonds, as announced by the finance minister in the Budget speech on February 1, 2022,” the ministry said.

“The issuance of Sovereign Green Bonds will be announced once the preparatory work is completed,” it added.