2 min readMumbaiMar 29, 2014 02:12 AM IST
First published on: Mar 29, 2014 at 02:12 AM IST
The Centre will front load its borrowing programme for FY15 and will raise gross Rs 3,68,000 crore from the market through dated securities between April and September 2014.
“This is 61.5 per cent of the total gross borrowing target of Rs 5.97 lakh crore for the full fiscal,” said Arvind Mayaram, secretary, department of economic affairs after a meeting with HR Khan, deputy governor of the Reserve Bank of India. This is in line with expectations and leaves room for the private sector to raise funds in the second half of the fiscal. In FY14, of the gross borrowing of Rs 5.63 lakh crore, 65 per cent was raised in the first half.
The net borrowing for the first half of next fiscal is targeted at Rs 2,93,000 crore through a mix of dated securities, treasury bills and inflation indexed bonds and will also include switching of government paper. “This is in line with the fiscal consolidation roadmap. We have assessed demand from banks and other long term investors, which is robust,” said Mayaram.
According the Interim Budget, the net borrowing for FY15 is estimated at Rs 4.57 lakh crore, which is about 3 per cent less than that of the current fiscal. “We have a comfortable cash position and we hope to start the new fiscal with about Rs 1 lakh crore in surplus cash,” said a finance ministry official.
Of this, gross borrowing in April 2014 is estimated at Rs 68,000 crore, said the official adding that lower amounts will be raised after May 15 when the first tranche of advance tax will be deposited. An average Rs 16,000 crore will be raised every week.
In the first quarter of the fiscal, the Centre will have a net borrowing component of Rs 40,000 crore from treasury bills, while redemptions are estimated at Rs 1.51 lakh crore.
The limit for Ways and Means Advances has been pegged at Rs 35,000 crore in the first half of the fiscal and will be reviewed for the second half later.
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