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

Millets to make comeback in army ration after half a century

As the UN has declared 2023 as the International Year of Millets, the Indian Army has steered introduction of millets flour in the rations of soldiers. This landmark decision will ensure troops are supplied with native and traditional grains after over half a century, when these were discontinued in favour

Central Bank Digital Currency has game-changing potential

When discussing digital currency, you might think of one or two well-known varieties. There is the digital representation of currency that you access with mobile and online banking services. This currency is the liability of a commercial bank. There is also cryptocurrency, a digital medium of exchange issu

An Insider’s Account of the Zail Singh Years: The Endgame

The Indian President: An Insider’s Account of the Zail Singh Years By K.C. Singh HarperCollins, 312 pages, Rs.699

‘My Father Was a Simple Man’: Remembering Gen. Rawat

Bipin: The Man Behind the Uniform By Rachna Bisht Rawat Penguin, 207 pages, Rs 599 On the morning of 8 December 202

A Mind and Heart without Corners

In Love, At Ease: Everyday Spirituality with Pramukh Swami By Yogi Trivedi Penguin Random House, 360 pages, Rs 499 Spirituali

Mumbai air quality dips, BMC swings into action

Taking note of Mumbai’s rising air pollution and deteriorating air quality in the recent months, the BMC has attributed rising dust levels to different large-scale development and construction works combined with changes in the wind speed conditions. It has constituted a seven-member committee, which