Government To Borrow Rs 3.72 Lakh Crore In First Six Months Of FY18

The government has pegged its gross borrowing at Rs 3.72 lakh crore for April-September, nearly two-thirds of its estimates for the next financial year, Economic Affairs Secretary Shaktikanta Das said.

At Rs 2.3 lakh crore, net borrowing in the first six months will be around half the full-year target, another senior finance ministry official said.

The government borrows from the market to meet its yearly expenditure and gross borrowing includes loan and interest repayment.

Twenty-four auctions will take place in the first half of the next financial year with an average size of Rs 15,000 crore. About four auctions will have a size of Rs 18,000 crore each, Das said. One of these will be conducted in April, two in July and one at end of August, taking into account the government's redemption pressure, he added.

A limit of Rs 60,000 crore has been set for ways and means advances, a temporary loan facility that the RBI offers the government.

In financial year 2017-18, the government will borrow Rs 3.48 lakh crore from the market after buybacks, around Rs 75,000 crore lower than the ongoing financial year, Finance Minister Arun Jaitley said in his Union Budget speech.

According to the budget document, net borrowing is estimated at Rs 4.23 lakh crore and gross borrowing at Rs 5.8 lakh crore.