Govt Brings Down Borrowing Target For FY23; Plans To Borrow Rs 5.92 Trillion In H2

A day after doling out Rs 44,762 crore for free ration to poor, the government on Thursday cut its market borrowing target for the current fiscal by Rs 10,000 crore in signs of buoyant tax collections, according to a PTI report.

In a statement, the finance ministry said the government will do total borrowing of Rs 5.92 trillion during October-March period of the current fiscal, including from issuance of its maiden Sovereign Green Bonds of Rs 16,000 crore.

The government had in Budget for 2022-23 projected a gross market borrowing of Rs 14.31 trillion. Of this, the government decided to borrow Rs 14.21 trillion during 2022-23, added the PTI report.

"Accordingly, the balance amount of Rs 5.92 trillion (41.7 per cent of Rs 14.21 trillion) is planned to be borrowed in the second half of the fiscal year 2022-23 through dated securities, including Rs 16,000 crore through issuance of Sovereign Green Bonds (SGrBs) as per the announcement made in the Union Budget 2022-23," it said.

The government will continue to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification, said the PTI report.

The amount raised through this option will be limited to 3 to 5 per cent of the gross issuance for second half and within the gross borrowing limit for the 2022-23.

The gross direct tax collections till September 17 grew 30 per cent to over Rs 8.36 trillion.