Centre to borrow Rs 18,000 crore a week
Government plans to borrow Rs 6 lakh crore from the market in the next fiscal
New Delhi: The government plans to borrow Rs 3.6 lakh crore from markets in the first half of 2015-16 to fund a fiscal deficit of 3.9 per cent of gross domestic product. This is 66.7 per cent of the annual target of Rs 6 lakh crore for 2015-16. The calendar for market borrowing was decided at a meeting between officials of the finance ministry and RBI.
“We will issue long-term bonds of 40 years in early next financial year. It will help us in the long run and will provide stability in the system. The total borrowing in the first six months would be to the tune of Rs 3.6 lakh crore,” said finance secretary Rajiv Mehrishi.
He said that the Centre would be borrowing about Rs 17,000-18,000 crore through bonds every week. The government borrows money from the markets through T-bills among others to fund its fiscal deficit.
The government plans to borrow Rs 6 lakh crore from the market in the next fiscal, up from Rs 5.92 lakh crore in 2014-15. However, the net borrowings in 2015-16 will be Rs 4.56 lakh crore, after considering repayments of past loans and interest.