Lowering target, govt to borrow Rs 5.92 lakh crore in FY23 second half

Despite the additional estimated spending, the government has not increased its borrowing target as it has cushion from higher revenue receipts so far. The gross direct tax collections till September 17 grew 30 per cent to over Rs 8.36 lakh crore, while Goods and Services Tax (GST) collections are averaging at Rs 1.49 lakh crore a month this fiscal.

The government’s borrowing plan for the second half of the fiscal includes Rs 16,000 crore of issuance of sovereign green bonds. In the first half of this financial year, April-September, the government has borrowed Rs 7.96 lakh crore through dated securities, with Rs 33,000 crore issuance scheduled for Friday. With the planned auction for Friday, the borrowing for the first half will total to be Rs 8.29 lakh crore.

The Finance Ministry said it plans to sell dated securities worth Rs 26,000-30,000 crore per week in October-March through auctions which will end in the week ending February 24.

“Accordingly, the balance amount of Rs 5.92 lakh crore (41.7 per cent of Rs 14.21 lakh crore) 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 the greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification. The amount raised through this option will be limited to 3 to 5 per cent of the gross issuance for the second half and within the gross borrowing limit for 2022-23.