Govt tries to soothe bond market jitters; to borrow Rs 2.88 trn in H1FY19

Borrowing in first half to be 47.5% of budgeted amount for 2018-19

Bond dealers were in for a surprise as the government on Monday moved to ease pressure on the market considerably by reducing the first-half borrowing programme to 47.5 per cent of the total budgeted borrowing, against the normal practice of borrowing 60-65 per cent.

The Centre said it would borrow Rs 2.88 trillion in April-September 2018-19, against market expectation of Rs 3.3-3.6 trillion. The weekly borrowing size would also be Rs 120 billion, against the usual Rs 150-180 billion, a great relief for the markets.

Economic Affairs Secretary Subhash Garg told reporters that the government would draw an additional Rs 250 billion