Government To Borrow Rs 7.24 Lakh Crore Between April And September 2021
People walk past North Block of the Central Secretariat building, which houses the Ministries of Finance and Home Affairs, stands in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Government To Borrow Rs 7.24 Lakh Crore Between April And September 2021

The central government will borrow Rs 7.24 lakh crore from the markets in the first half of 2021-22, officials said.

The borrowing from April and September will be 60.06% of the total market borrowing of Rs 12.05 lakh for the new financial year. This is in line with previous years. In FY20, before the borrowing programme was expanded due to the Covid-19 crisis, the government planned to raised 62.56% of its planned financing in the first half. A year before that, the proportion was 62.25%.

India will issue government securities with a maturity of 2, 5, 10, 14, 30 and 40 years. Floating-rate bonds will also be issued.

Also read: Inflation Target Kept At 'Same Level' For Next Five Years, Says Government Official

In FY20, the government borrowed Rs 13.7 lakh crore. This borrowing was concluded at a weighted average cost of 5.79%, the lowest since 2004-05, Tarun Bajaj, economic affairs secretary to the government, said. The weighted average maturity of this borrowing is at 14.49 years.

Bajaj said the government remains in touch with the Reserve Bank of India for the current year’s borrowing programme. We hope RBI will take appropriate action to ensure that yields remain in reasonable limits, Bajaj said.

Details Of Borrowing Calendar

Details of the planned borrowings, released by the RBI, shows the government will borrow between Rs 26,000 crore and Rs 32,000 crore each week.

  • Rs 36,000 crore will be borrowed via 2-year bonds
  • Rs 1.43 lakh crore will be borrowed via 5-year bonds
  • Rs 1.68 lakh crore will be borrowed via 10-year bonds
  • Rs 1.3 lakh crore will be borrowed via 14-year bonds
  • Rs 91,000 crore will be borrowed via 30-year bonds
  • Rs 1.08 lakh crore will be borrowed via 40-year bonds
  • Rs 49,000 crore will be borrowed via floating rate bonds
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