Govt to borrow Rs 8.8 lakh crore in the first half of FY24
New Delhi: The government has decided to borrow Rs 8.8 lakh crore via bonds from the market in the first half of the financial year 2023-24 starting April 1.
"Out of Gross Market borrowing of Rs 15.43 lakh crore projected for FY 2023-24 in the Union budget, Rs 8.88 lakh crore (57.55%) is planned to be borrowed in the first half (H1)," Finance Ministry said in a statement on Wednesday.
The borrowing is scheduled to be completed in 26 weekly tranches of Rs 31,000-39,000 crore. The borrowing will be spread under 3, 5, 7, 10, 14, 30 and 40-year securities.
The ministry said that the issuance of Sovereign Green Bonds will be announced in the second half (H2) of FY 2023-24.
The government will continue to exercise the green shoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification.
"To take care of temporary mismatches in Government accounts, the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2023-24 at Rs 1,50,000 crore," the statement said.
The Green Shoe Option, also known as an over-allotment option, is a provision in an underwriting agreement for an initial public offering (IPO) that allows the underwriters to sell additional shares to the public if demand for the IPO exceeds expectations.
(With UNI inputs)
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