Centre to borrow Rs 2.49 lakh crore in 2nd half of fiscalhttps://indianexpress.com/article/business/business-others/centre-to-borrow-rs-2-49-lakh-crore-in-2nd-half-of-fiscal/

Centre to borrow Rs 2.49 lakh crore in 2nd half of fiscal

The decision was taken at a meeting between officials of the finance ministry and Reserve Bank of India in Mumbai on Monday.

The Centre plans to borrow gross Rs 2.49 lakh crore in the second half of the current fiscal, including Rs 15,000 crore through the newly announced sovereign gold bonds and another Rs 2.34 lakh crore through government securities.

This is almost in line with the Budgeted target of Rs 6 lakh crore in gross borrowings in 2015-16. The Centre plans to Rs 3.6 lakh crore through market borrowings in the first half of the fiscal that ends September 30.

The decision was taken at a meeting between officials of the finance ministry and Reserve Bank of India in Mumbai on Monday.

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“To enable institutional and retail investors to plan their investments efficiently and provide transparency and stability to the government securities market, an indicative calendar for issuance of government dated securities for the second half of the fiscal year 2015-16 (October 01, 2015 to March 31, 2016) is being issued in consultation with the RBI,” said a finance ministry release.

According to the borrowing calendar, the government plans to raise Rs 15,000 crore every week through the markets through government securities till December 11 after which it will raise Rs 14,000 crore every week till February 5.

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“It has also been decided to elongate maturity by issuance of security up to 40 year maturity,” said the release.