States, UTs to raise Rs 2.37 trn in Q3FY24 through market borrowings: RBI

State governments and Union Territories (UTs) plan to raise Rs 2.37 trillion through market borrowings in October–December 2023 (Q3FY24), according to the Reserve Bank of India. 
 

Aditi Nayar, chief economist, ICRA, said the indicative borrowing amount for Q3FY24 is broadly along expected lines. ICRA’s forecast of the full-year issuance of Rs 9.5 trillion suggests that Rs 3.5 trillion of issuance could be made in Q4.
 

According to the indicative calendar of borrowings, states\UTs shall raise Rs 74,842 crore in October, Rs 76,200 crore in November, and Rs 86,221 crore in December 2023.
 

With central tax devolution in H2FY24 unlikely to demonstrate high growth over last year (FY23), there may be a limited downside to the amount of issuance the states have indicated for Q3FY24.