The Government of India, in collaboration with the Reserve Bank of India, has completed its borrowing plan for the first half (H1) of the fiscal year 2024-25.
From the total projected gross market borrowing of ₹14.13 lakh crore for the fiscal year 2024-25 as outlined in the Union budget, ₹7.50 lakh crore (53.08%) is earmarked to be borrowed during the first half (H1) through dated securities, including ₹12,000 crore through the issuance of Sovereign Green Bonds (SGrBs). In response to market feedback and in alignment with global market standards, a new dated security with a tenor of 15 years will be introduced.
The borrowing of ₹7.50 lakh crore in the market will be conducted through 26 weekly auctions and will encompass various maturities ranging from 3 to 50 years. The distribution of borrowing (including SGrBs) across different maturities will be as follows: 3-year (4.80%), 5-year (9.60%), 7-year (8.80%), 10-year (25.60%), 15-year (13.87%), 30-year (8.93%), 40-year (19.47%), and 50-year (8.93%).
The Government will persist in conducting security switching operations to ensure a smooth redemption profile.
Additionally, the Government retains the option to exercise the greenshoe option, allowing for an additional subscription of up to ₹2,000 crore for each of the securities mentioned in the auction notices.
In the first quarter (Q1) of the fiscal year 2024-25, weekly borrowing through Treasury Bills is anticipated to be ₹27,000 crore for the initial seven auctions and ₹22,000 crore for the subsequent six auctions, with a net borrowing of ₹(-)3,000 crore during the quarter. This will involve weekly issuances of ₹12,000 crore under 91-day Treasury Bills (DTBs), ₹7,000 crore under 182-day DTBs, and ₹8,000 crore under 364-day DTBs for the first seven auctions. Subsequent six auctions will see weekly issuances of ₹10,000 crore under 91-day DTBs, ₹5,000 crore under 182-day DTBs, and ₹7,000 crore under 364-day DTBs.
To address temporary imbalances in Government accounts, the Reserve Bank of India has set the Ways and Means Advances (WMA) limit for the first half (H1) of fiscal year 2024-25 at ₹1.50 lakh crore.
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