Government to borrow Rs 4.34 lakh crore in second half of FY21 as planned in May

Out of the estimated Rs 12 lakh core borrowing for the full year, the government has already borrowed Rs 7.66 lakh crore, which accounts for 63.8 percent of the target

Moneycontrol News

September 30, 2020 / 07:03 PM IST

The government would borrow Rs 4.34 lakh crore in the second half of FY21 and there would be no change in its Rs 12 lakh crore borrowing plan for the whole year as was decided in May.

"The borrowing target was raised to Rs 12 lakh crore in May from the originally budgeted figure of Rs 7.6 lakh crore keeping in mind the economic fallout of the covid-19 pandemic, and the decision was to stick to this as per current estimates," economic affairs secretary Tarun Bajaj said at a briefing on September 30.

Out of the estimated Rs 12 lakh core borrowing for the full year, the government has already borrowed Rs 7.66 lakh crore, which accounts for 63.8 percent of the target, Bajaj said.

"We have decided to continue with the same figure of Rs 12 lakh crore for the entire year. Which means our borrowing for second half would be Rs 4.34 lakh crore or 36.1 percent of the Rs 12 lakh crore to be borrowed for the whole year," Bajaj said.

The government aims to raise Rs 24,000 crore through two-year tenor, Rs 68,000 crore through 5-year tenor, Rs 96,000 crore through 10-year G-secs, Rs 90,000 crore through 14-year tenor, Rs 72,000 crore through thirty-year tenor, Rs 52,000 crore through 40-year tenor, and Rs 32,000 crore through floating rate bonds.

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