Government of India set to borrow Rs 7.50 lakh crore in first half of FY25

The Government of India, in consultation with the Reserve Bank of India, has finalized its borrowing programme for the first half (H1) of FY 2024-25. Out of Gross Market borrowing of Rs 14.13 lakh crore projected for FY 2024-25 in the Union budget, Rs 7.50 lakh crore (53.08%) is planned to be borrowed in the first half (H1) through dated securities, including Rs 12,000 crore through issuance of Sovereign Green Bonds (SGrBs). Based on market feedback and in line with global market practices, it has been decided to introduce a new dated security of 15-year tenor. The gross market borrowing of Rs 7.50 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50 year securities. The share of borrowing (including SGrBs) under different maturities will be: 3-year (4.80%), 5-year (9.60%), 7-year (8.80%), 10-year (25.60%), 15-year (13.87%), 30-year (8.93%), 40-year (19.47%) and 50-year (8.93%).

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