Union Government to Borrow Rs 7.24 trillion during H1FY22

In the first half of fiscal year 2021-22, Union Government will borrow Rs 7240 billion, which is 60.03% of the total budgeted borrowing of Rs 12000 billion for full fiscal year.

From 5^th April, 2021 to 24^th September, 2021 RBI is scheduled to conduct 24 weekly auctions for government securities of Rs 260-310 billion.

The issuance in the 2 years maturity category is expected to be around 3% of total issuance , 5 years maturity category  around 12% , in the 10 years maturity category around 14%, in the 14 years maturity category around 10.83%, in the 30 years maturity category around 7.58% while in the 40 years maturity category around 9% and Floating rate bond(FRB) category around 4%.

The government will issue different types of instruments having non-standard maturities and Floating Rate Bonds, including CPI linked inflation-linked bonds, depending upon the requirement. RBI will also conduct switches of securities operation through an auction on every third Monday of the month. Moreover, Government of India reserves the right to exercise the green-shoe option to retain additional subscription up to Rs 60 to 80 billion in each weekly auction depending upon the number of securities offered.

Regular government borrowing is in addition to bond switches where the government will buy short end and issue long end bonds to elongate the maturity of debt and helps relieve stress on near term bond maturity repayments.

In FY22, total redemption of Government of India securities amounts to Rs 2642.79 billion as given below.