The government has decided to cut borrowings by Rs70,000cr in the current fiscal year, signaling its confidence in keeping the fiscal deficit under control.
Gross borrowing will be at Rs2.47tn for the October-March period. The borrowing programme will be spread across 21 weekly auctions of government bonds, ending the calendar on March 8, Economic Affairs Secretary Subhash Chandra Garg said in a media report.
“In terms of expenditure, even after taking into account MSP and Ayushman Bharat, we are on track. Therefore, there is no need to revise the fiscal deficit at all,” Garg added.
The H2 gross borrowing of Rs2.47tn is in line with our expectations, following the upward revision in small savings interest rates that was announced recently, as per ICRA. As a result, the 10-year bond yield is expected to range between 8.0-8.1% in the near term.
Gross borrowing will be at Rs2.47tn for the October-March period. The borrowing programme will be spread across 21 weekly auctions of government bonds, ending the calendar on March 8, Economic Affairs Secretary Subhash Chandra Garg said in a media report.
“In terms of expenditure, even after taking into account MSP and Ayushman Bharat, we are on track. Therefore, there is no need to revise the fiscal deficit at all,” Garg added.
The H2 gross borrowing of Rs2.47tn is in line with our expectations, following the upward revision in small savings interest rates that was announced recently, as per ICRA. As a result, the 10-year bond yield is expected to range between 8.0-8.1% in the near term.
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