Government issued Borrowing plan for first half of FY 2024-25

Out of Gross Market borrowing of ?14.13 lakh crore projected for FY 2024-25 in the Union budget, ?7.50 lakh crore (53.08%) is planned to be borrowed in the first half (H1) through dated securities, including ?12,000 crore through issuance of Sovereign Green Bonds (SGrBs). It has been decided to introduce a new dated security of 15-year tenor based on global market practice.

The Government will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to ?2,000 crore against each of the securities indicated in the auction notifications. The Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2024-25 at ?1.50 lakh crore.

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The gross market borrowing of ?7.50 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50-year securities. The share of borrowing (including SGrBs) under different maturities will be: 3-year (4.80%), 5-year (9.60%), 7-year (8.80%), 10-year (25.60%), 15-year (13.87%), 30-year (8.93%), 40-year (19.47%) and 50-year (8.93%).

Weekly borrowing through issuance of Treasury Bills in the first quarter (Q1) of FY 2024-25 is expected to be ?27,000 crore for the first seven auctions and ?22,000 crore for the subsequent six auctions with net borrowing of ?(-)3,000 crore during the quarter.

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