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Govt to borrow 1.56 lakh crore in Q2 through auctions of T-Bills

01 Jul 2013 Evaluate

The government will borrow Rs 1.56 lakh crore in the July-September quarter through the auction of Treasury Bills to meet their financing requirements. The government, in consultation with the Reserve Bank of India (RBI), has notified amounts for the issuance of T-Bills for the, following a review of its cash position. As per the auction calendar, the government will raise Rs.12,000 crore on every Wednesday each week starting July 3 till September 25, to mop up a total amount of Rs.1.56 lakh crore during the second quarter of 2013-14.

Currently, the gross market borrowing through issue of dated securities in this fiscal has been pegged at Rs 5.79 lakh crore and the net borrowing will be at Rs 4.84 lakh crore against Rs 4.67 lakh crore in 2012-13. The front-loading of borrowing is mainly targeted at making available capital to the private sector in the last six months of current fiscal year.

In current fiscal, government has to borrow funds from market to finance the fiscal deficit estimated to be 4.8% against 4.9 % in 2012-13. It is expecting to collect Rs 40,000 crore from disinvestment, Rs 15,000 crore from sale of remaining stakes in the companies and healthy growth in tax collection in current fiscal to fund its expenditure.

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