New Delhi: Releasing government’s borrowing plan, the Finance Ministry on Thursday said that out of gross market borrowing of Rs 14.31 lakh crore estimated for FY23, Rs 8.45 lakh crore is planned to be borrowed in the first half (H1 or April-September period).
“The borrowing is scheduled to be completed in 26 weekly tranches of Rs 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 (FRBs) of various tenors,” the Finance Ministry said.
FRBs of various tenors will be issued on fortnightly basis. As per Budget 2022-23, the budgeted gross market borrowing through dated securities for the FY 2022-23 is Rs 14,95,000 crore.
Taking into account the switch operations conducted on January 28, 2022, the gross market borrowing through dated securities for the FY 2022-23 is expected at Rs 14,31,352 crore.
The Finance Ministry said that government will continue to carry out switching of securities to smoothen the redemptions. Further, it may continue to exercise greenshoe option to retain an additional subscription upto Rs 2,000 crore against each of the securities indicated in the auction notification.
Meanwhile, the government and Reserve Bank of India (RBI) are working jointly in bringing out a Framework for issuance of Sovereign Green Bonds, as announced by Finance Minister in the Budget Speech on February 1, 2022. “The issuance of Sovereign Green Bonds will be announced once the preparatory work is completed,” said the Finance Ministry. (UNI)