Govt to borrow Rs.3.72 lakh crore in 1st half of next fiscal

The government will borrow from markets about 3.72 lakh crore rupees in the first half of next fiscal beginning April which is 64 per cent of the borrowing target for full financial year.

The borrowing in the April-September period will be a little higher compared to other years as the finance ministry and the RBI foresee other ministries to start spending from the beginning of the fiscal as well as redemption pressure. Speaking to reporters in New Delhi this evening, Economic Affairs Secretary Shaktikanta Das said, normally every year Government borrows 60-62 per cent in the first half of the year, this year it is marginally higher 64 per cent.

He said, 90 per cent of the total redemptions due next year will happen in the first half. He said, budget has been passed and



money will be available fully from the beginning of the year and considering the revenue inflows and other receipts, the group has decided that of total gross borrowing 64 per cent.

To finance the fiscal deficit of 3.2 per cent of GDP for2017-18, the Budget had pegged gross borrowing at 5.8 lakh crore rupees and net borrowing at 4.25 lakh crore rupees. Total redemptions of 1.57 lakh crore rupees are due next year of which 90 per cent will be redeemed in the first half. 

Mr Das said, the focus in planning the open market borrowing is to elongate the maturity profile and also to undertake it in the most non-disruptive manner.Besides, the ministry and RBI has decided to elongate the maturity profile of government securities beginning next year.