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
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

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said.   He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur

Machines communicate, humans connect

There is a moment every event professional knows—the kind that arrives without warning, usually an hour before the curtain rises. Months of meticulous planning are in place. And then comes the call: “We’ll also need a projector. For the slides.”   No email


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter