Government plans to borrow Rs 7.5 lakh crore from the market in the first half of 2024-25

The government has decided to borrow Rs 7.50 lakh crore in the first half of FY 2024-25 through dated securities out of the projected Gross Market borrowing of Rs 14.13 lakh crore. This includes raising Rs 12,000 crore through Sovereign Green Bonds and introducing a new 15-year tenor security based on market feedback.

The borrowing programme has been finalized in consultation with the Reserve Bank of India, with the Rs 7.50 lakh crore to be completed through 26 weekly auctions. The market borrowing will be spread over different maturities ranging from 3-year to 50-year securities.

The government will also continue to carry out the switching of securities to smooth the redemption profile and reserve the right to exercise the greenshoe option to retain an additional subscription. Weekly borrowing through issuance of Treasury Bills in the first quarter of FY 2024-25 is expected to be managed with various DTBs.

To manage temporary mismatches in Government accounts, the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2024-25 at Rs 1.50 lakh crore. This move aligns with the government’s strategy to manage its borrowing program efficiently in the upcoming fiscal year.