Page 2 - Market Borrowings

Best of BS Opinion: Ideal product for Covid times, govt's borrowing & more

Here's a selection of Business Standard opinion pieces for the day

As Modi govt revises borrowing plan, yields on 5-year bonds move upwards

Bond dealers not very alarmed as this brings to an end the uncertainty on state and government GST compensation drama for now

Modi govt's enhanced market borrowing plan may roil the bond market

The pandemic has ravaged revenues of both the federal and state governments and pushed the economy toward the worst contraction on record

Yield on 10-yr state govt bonds eases by 26 bps after RBI's intervention

The weighted average cut-off for the 10-year SDLs eased by a sharper 26 bps to 6.63 per cent on October 13, 2020 over the previous weekly auction

States' market borrowings jump 55% to Rs 3.75 trillion so far this fiscal

The states' market borrowings have jumped 55% to Rs 3.75 trn, or 75% of the budgeted amount, with 17 of them raising an additional Rs 22,350 crore from the latest auction of state development loans

At Rs 40,072 cr, govt's external financing jumps 5 times till Aug: Report

In absolute terms, fiscal deficit -- which is the gap between expenditure and revenue -- stood at Rs 8,70,347 crore

RBI gives more time to avail additional market borrowing, OD facility

The Reserve Bank in April provided additional flexibility to states and Union Territories (UTs) to raise funds to deal with the Covid-19 crisis. The flexibility was available till September 30, 2020.

Centre gives states two options to meet GST compensation cess shortfall

States given two options to borrow: Rs 97,000 crore or Rs 2.35 trillion, burden of repayment on extension of cess period

States' mkt borrowings jump 76% to Rs 1.93 trn so far this fiscal: Report

In addition, the Centre has also relaxed the fiscal deficit target from 3 to 5 per cent.

Ratio of India's public debt to GDP likely to scale a new high in FY21

According to the Reserve Bank of India (RBI) data, the combined liabilities of the Centre and the state governments were around Rs 147 trillion at the end of March 2020

Borrowings by states double in lockdown owing to severe revenue crunch

Market borrowings at over Rs 1.26 trn in April-early June, against Rs 60,000 cr in the year-ago period

RBI issues cash management bills worth Rs 80,000 cr after good response

The RBI received bids of Rs 3.45 trillion, or more than four times the amount on offer.

States' deficit, market borrowings to increase to 4.5% of GDP: Ind-Ra

State governments were already faced with a lower-than-budgeted share in central taxes and subdued own revenue growth, when the 21 days economic lockdown was imposed from March 25

After govt hikes market borrowing limit, states redraw their road maps

Union government has allowed states to borrow till their fiscal deficit hits 5 per cent of their respective gross state domestic product (GSDP)

RBI monetary policy review: Walking the extra mile

Since March 27, the RBI has acted proactively and ahead of time to contain the fallout of the Covid-19 pandemic.

No restrictions on utilisation of additional borrowing by states: FinMin

It is to be noted that the basic limit of 3 per cent remains unconditional, while only additional one per cent out of the two is linked to citizen centric reforms, Finance ministry official said.

States call conditions on market borrowings an assault on federal structure

They says the conditions will constrain the state govts' ability to find funds in the wake of a serious financial situation

Centre considers market borrowing for GST compensation to states

Raising GST rates or rationalisation of tax slabs may be discussed by the GST Council in the next meeting to be scheduled early next month.

RBI converts less than a third of Rs 30K-crore bonds into long securities

Bond dealers said the market wanted the RBI to offer them higher coupon for the switch, as the source security is maturing just next month.

Without more stimulus, India's GDP may contract 9% in FY21: Pronab Sen

Sen said that on the face of it, the package looked good, with roughly the kind of damage that has happened to the economy