Govt will maintain borrowing plan, likely sell Rs 2.68 trn of bonds: Report

The centre will maintain its borrowing plan for the remainder of this fiscal year, an official said.

Prime Minister Narendra Modi’s administration will likely sell about Rs 2.68 trillion ($37.8 billion) of bonds in the six months beginning Oct 1, the official told reporters in New Delhi, asking not to be identified citing rules. India had a target to borrow Rs 4.42 trillion in the fiscal first-half started April.

A decision on the nation’s maiden foreign currency sovereign bond sale, announced first in July, has not been made, the official said.

The move to maintain the borrowing plan will be seen as a positive for bonds, which have declined in six of the past eight weeks, after a cut in corporate tax rates stoked concerns a shortfall in revenue will be met through higher debt sales. A Bloomberg survey of economists last week indicated the budget deficit may widen to a four-year high.

The new borrowing schedule will be announced on Sept 30, the official said. The delay in announcement is being made to help banks avoid mark-to-market losses.