New Delhi, Sep 27 (FN Agency) The Centre would borrow Rs 5.03 lakh crore during October-March period of the current financial year, Finance Ministry said on Monday. The borrowing is likely to be conducted in 21 weekly tranches of Rs 24,000/23,000 crore. It will be spread under 2, 5, 10, 14, 30 and 40 year-securities and Floating Rate Bonds (tenor of 7-8 & 13 years). Out of gross market borrowing of Rs 12.05 lakh crore projected for financial year 2021-22 in the Union Budget, Rs 7.24 lakh crore (60 %) was planned to be borrowed in first half (H1). The effective borrowing in April-September (H1) of FY22 was Rs 7.02 lakh crore.
“The H2 FY 2021-22 projection also factors requirements for release of balance amount to states on account of back-to-back loan facility in-lieu of GST compensation during the year,” the Finance Ministry said. As per the government statement, borrowing in H1 has been completed smoothly with weighted average yield at 6.19 per cent and weighted average maturity at 16.69 years. “In H1, good demand for Government bonds was seen from all major investor segments and the yields have remained stable,” it said.