The government of India, in consultation with the Reserve Bank of India (RBI), has finalised its borrowing programme for the second half (H2) of the Financial Year (FY) 2023-24.
Out of gross market borrowing of Rs 15.43 lakh crore projected for FY 2023-24, the government has decided to borrow the balance amount of Rs 6.55 lakh crore (42.45 per cent of Rs 15.43 lakh crore) in the second half of the fiscal year 2023-24 (H2:FY 2023-24) through dated securities, including Rs 20,000 crore through issuance of Sovereign Green Bonds (SGrBs). Responding to market demand for longer duration securities, 50-year security will be issued for the first time.
The gross market borrowing of Rs 6.55 lakh crore shall be completed through 20 weekly auctions. The market borrowing will be spread over three, five, seven, 10, 14, 30, 40 and 50 years’ securities. The share of borrowing (including SGrBs) under different maturities will be: three years (6.11 per cent), five years (11.45 per cent), seven years (9.16 per cent), 10 years (22.90 per cent), 14 years (15.27 per cent), 30 years (12.21 per cent), 40 years (18.32 per cent) and 50 years (4.58 per cent).
The government will continue to carry out switching of securities to smoothen the redemption profile. Out of the Rs 1,00,000 crore of budgeted switch amount, Rs 51,597 crore of switch auctions have already been conducted and the balance amount of switch auctions will be conducted in H2.
The government will continue to exercise green-shoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification.
Weekly borrowing through issuance of treasury bills in third quarter (Q3) of FY 2023-24 is expected to be Rs 24,000 crore with net borrowing of Rs (-)52,000 crore during the quarter. There will be issuance of Rs 7,000 crore under 91 DTBs, Rs 8,000 crore under 182 DTBs and Rs 9,000 crore under 364 DTBs in each auction to be conducted during the quarter.
To take care of temporary mismatches in government accounts, RBI has fixed the Ways and Mean Advances (WMA) limit for H2 of FY 2023-24 at Rs 50,000 crore.