Government Borrowing

The government borrowing programme is scheduled to be completed in 26 weekly tranches of Rs 31,000-39,000 crore each

Sovereign yield curve seen steeper; short-term bonds may gain on likely RBI pivot

The fall in tax revenue and expected slowing economic growth next fiscal year will limit the government's ability to cut borrowing in the near term

Nevertheless, as a proportion of GDP, fiscal deficit is expected to ease to 5.8 per cent from 6.4 per cent

The government will be saving more than two per cent on the Rs 39.4 trillion budget

The Rs 10,000 cr cut in govt's mkt borrowing obviates the fear of oversupply of paper that typically builds up around Dec end when govt takes stock of its finances for the year

The government will borrow Rs 5.92 trillion, or 41.6 per cent of the new FY23 target, in October-March, including from the issuance of its maiden sovereign green bonds of Rs 16,000 crore

India may keep its market borrowing plan for the financial year intact, with a recent uptick in revenues likely to lead to a discussion on whether the target can be reduced

Will the dream run continue in the second half of the year too, spreading cheers to the treasury floors and adding to banks' profits?

Actual borrowings and state-wise breakup will be intimated 2-3 days prior to auction day; RBI to try and ensure auctions are held in non-disruptive manner considering mkt conditions

Icra said a comfortable cash flow position of the state governments was due to a back-ended release of tax devolution to the states in FY2022

No compromise on capex; consolidated fund to be used if needed, the source said

This, despite sacrificing revenue on account of reduction in duties on petroleum products and other goods, say official sources

An RBI report says even in the best case scenario, general govt debt may not dip below 75% of GDPl and if there are events, it may in fact rise to 90% of GDP by 2026-27

The Union government is looking to raise Rs 8.45 lakh crore through borrowings in the first half of 2022-23 to fund the revenue gap for reviving the economy, the finance ministry said on Thursday.

Out of gross market borrowing of Rs 14.31 lakh crore estimated for FY2022-23, Rs 8.45 lakh crore is planned to be borrowed in the first half (H1), an official statement said

Rethink on proportion on back of Fed tightening, high oil prices

Even if the G-sec yields remain where they are, if the spreads have to normalise, the SDL cut-offs will need to rise, more so for weaker states

The reduction could be announced before the end of March, the sources said requesting anonymity because of the sensitivity of the matter

15-40 bps raise likely in MPC meeting next week, say market participants