InvestorQ : How do you see the government borrowing program happening in the FY22?
NISHA Nayak made post

How do you see the government borrowing program happening in the FY22?

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Priyanka N answered.
8 months ago
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For the fiscal year Fy22, the government plans to go aggressively front-end on its borrowing program. Out of the total target of Rs.12,00,000 crore for FY22, the government now plans to auction Rs.724,000 crore of bonds in the first half itself. This was confirmed by the Tarun Bajaj, the Economic Affairs Secretary to the government of India. That means; 60% of the borrowing target will be completed in the first half itself.

It may be recollected that India had witnessed a steep increase in its borrowing levels in FY21 and FY22 due to the sharply higher fiscal deficit. Revenues had lagged during the year on direct and indirect tax front, but the government was forced to stimulate the economy with a $350 billion package. This ended up putting pressure on finances. In the last few weeks, the market has rejected G-Secs at auctions due to very low yields.

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