Union Government of India is scheduled to borrow Rs 5030 billion during H2FY22 which is 41.92% of total gross borrowing for entire fiscal year. As of 24th Sep FY22, Government of India’s gross borrowing stood at Rs 6695 billion while net borrowing stood at Rs 5302.4 billion.
From 1st October 2021 to 25th Feb 2022, RBI is scheduled to conduct 21 auctions of government securities of Rs 260-350 billion each.
Maturity-wise break-up of borrows securities
Maturity(years) | Amount to be borrowed (Rs billion) | Percentage of borrowed amount in H2FY22 |
2 | 200 | 3.98% |
5 | 600 | 11.93% |
10 | 1430 | 28.43% |
14 | 900 | 17.89% |
30 | 700 | 13.92% |
40 | 760 | 15.11% |
Floating Rate(FRB) | 440 | 8.75% |
Total | 5030 | 100% |
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. Government of India has also kept the right to exercise the green-shoe to retain additional subscription up to Rs 20 billion for security-wise for second half of 2020-21, under Green Shoe option.
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.
During H2FY22, two securities amounting to Rs 1250.21 billion are coming up for redemption. On 8th Nov 2021, 8.79% GS 2021 outstanding Rs 753 billion and on 15th Feb 2022, 8.20% GS 2022 outstanding Rs 497.21 billion will be redeemed.