Government Retains Rs 6.61 Lakh Crore Borrowing Target for Financial Year 2024-25

The government plans to borrow Rs 6.61 lakh crore through auction of dated securities during October-March 2024-25 to boost economic growth. This forms part of the Rs 14.01 lakh crore gross market borrowing budgeted for the fiscal year. The borrowing program includes various maturities and SGrBs.

The Centre has confirmed its borrowing target for the current fiscal year, planning to raise Rs 6.61 lakh crore through the auction of dated securities from October to March 2024-25 to plug the revenue gap and stimulate economic growth.

According to a statement by the finance ministry on Thursday, out of the gross market borrowing of Rs 14.01 lakh crore budgeted for 2024-25, Rs 6.61 lakh crore (47.2 per cent) will be borrowed in the second half through dated securities, including Rs 20,000 crore in Sovereign Green Bonds (SGrBs).

The borrowing program will be executed through 21 weekly auctions and will span multiple maturities ranging from 3 years to 50 years, with specific percentages allocated to each tenure. The government will also exercise options like switching, buyback of securities, and a greenshoe option for additional subscriptions up to Rs 2,000 crore per security.

(With inputs from agencies.)