Government looks at additional borrowing of Rs 20,000 crore -Governance Now

Government looks at additional borrowing of Rs 20,000 crore

Earlier, additional borrowing of Rs 50,000 crore was on the anvil

GN Bureau | January 17, 2018

#budget #revenue receipts #government borrowing #RBI #Treasury Bills

Government looks at additional borrowing of Rs 20,000 crore

Additional borrowing of Rs 20,000 crore, and not Rs 50,000 crore, is being considered by the government to meet financial needs.

Upon a review of trends of revenue receipts and expenditure pattern, it has been assessed that an additional borrowing of only Rs 20,000 crore of government securities would be adequate to meet financing needs, said a PIB release.

“Government did not accept borrowings of Rs 15,000 crore in last three auctions. Remaining Rs 15,000 crore would be reduced from the notified borrowing programme of ensuing weeks,” it said.

In its press release dated December 27, 2017, the government had stated that it will raise additional market borrowing of Rs 50,000 crore through dated government securities in the current financial year, 2017-18.

In the union budget for FY 2017-18, the gross and net market borrowing were budgeted at Rs 5,80,000 crore and Rs 4,23,226 crore respectively with Rs 3,48,226 crore being raised (net) from dated government securities and Rs 2,002 crore from T-bills.

Treasury Bills are short term (up to one year) borrowing instruments of the government of India which enable investors to park their short term surplus funds while reducing their market risk.

Borrowings in FY 18 till date (Dec 26, 2017) have been conducted in line with the borrowing calendar for FY18. Gross and net market borrowings in FY 18 till December 26, 2017 are Rs 5,21,000 crore and Rs 3,81,281 crore, excluding buyback/switches, respectively. As against the budgeted net T-bills receipt of Rs 2002 crore in FY 18, net collections till Dec 26 2017 are Rs 86,203 crore, the authorities said in December 2017.

The borrowing programme of the government of India has been reviewed, with RBI, and following decisions taken: The government will trim down the T-Bills from present collections of Rs 86,203 crore to Rs 25,006 crore by March end, 2018.

Comments

Other News

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli

Delhi moves to real-time traffic management

The Cabinet Committee on Economic Affairs (CCEA), chaired by prime minister Narendra Modi, has approved implementation of the ITMS Project by Delhi Police at an estimated cost of Rs.1,789.52 crore, inclusive of taxes. The project will cover 42 identified traffic corridors and will be implemented in three

MDR on UPI: Can sustainability come without weakening the network?

The extraordinary transaction volumes and value (₹29.82 Lakh crore in August 2026 alone) of the Unified Payments Interface (UPI) have made it not only an Indian success story, but a global one. In 2024, UPI accounted for nearly 49% of the world’s real-time payment transaction volume, with more th

The Xi-Trump summit: The unending rivalry

Diplomacy is akin to an art, wherein the summitry, conflict resolution and negotiations form apt constituents of the entire context of deal making and “playing for keeps” in the international arena. The Xi-Trump summit in Washington last week, in which the American president broke all conside

“Indians, yet treated like outsiders”

Moving to Delhi-NCR for education can be an exciting experience for students from Northeast India. It gives us a chance to meet new people, experience a different culture and become more independent. But living away from home also comes with challenges that people who have not experienced them may not al

Import duty on major edible oils cut

The government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.