Govt plans to borrow Rs 3.9 trillion via treasury bills in Q4FY25

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The government plans to borrow Rs 3.9 trillion through the issuance of treasury bills (T-bills) in the last quarter of the current financial year. The amount will be raised over 13 weeks, with Rs 1.68 trillion allocated to 91-day treasury bills (DTBs), Rs 1.28 trillion to 182-day DTBs, and Rs 98000 crore to 364-day DTBs. 

Market participants said that the gross borrowing amount was higher than expected. 

“We were expecting a lower number, some people were looking at borrowing cuts in the last quarter,” said a dealer at a state-owned bank. 

Weekly borrowing throu­gh issuance of Treas­ury Bills in the last quarter is expected to be Rs 28,000 crore for seven weeks, and Rs 33,0­00 crore for six weeks. 

“If we consider competitive and non-competitive issuance, it is on the higher side but purely depends on how much the non-competitive bids are in the final quarter. On a net basis, competitive plus non-competitive net supply will end up being higher than what was implied in the budget,” said Gaura Sen Gupta, chief economist at IDFC First Bank.