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Indian Govt To Borrow Rs 4.42 Lakh Crore In The First Half Of FY20

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The government on Friday said that it plans to borrow Rs 4.42 trillion ($63.92 billion) in the first half of the financial year 2019-20 (FY20) that will begin on 1 April. This planned borrowing for the April to September 2019 period is nearly 54 percent higher than the Rs 2.88 lakh crore borrowed last year.

Indian Govt To Borrow Rs 4.42 Lakh Crore In The First Half Of FY20
 

In the interim budget proposed on 1 February, the government had envisaged gross market borrowing of Rs 7.1 trillion and net market borrowing of Rs 4.73 trillion for 2019-20. This means that the government will be making 62 percent of its budgeted gross borrowings in the first six months.

In 2018-19, the government had pushed the borrowing in the initial months as market conditions were adverse and yields were high, making 47.56 percent of its budgeted gross borrowing in the first six months.

Experts suggest the bond yields could likely rise as supply of government bonds are anticipated to increase.

Finance secretary Subhash Chandra Garg said that the maturity of borrowings will be spread across the curve. A new 7-year bond will be introduced as well.

Read more about: borrowings bonds
Story first published: Saturday, March 30, 2019, 10:39 [IST]
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