It's time to formalise the normalisation process: Part 2

MPC's stance should remain accommodative till growth is secured, and future actions should be data-driven. But for now, reverse repo rate should be hiked by at least 20 bps

The gross borrowing in FY23 is estimated at Rs 14.95 trillion (after the switch of certain papers, it’s Rs 14.31 trillion) -- a historic high. The current year’s gross borrowing has been Rs 11.65 trillion. So far, Rs 10.7 trillion has been raised. Net borrowing after redemptions next year will be Rs 11.186 trillion versus the current year’s Revised Budget Estimate of Rs 9.348 trillion -- again, a historic high. Then, there will be borrowing by the state governments. The state fiscal deficit will rise from 3.5 per cent to 4 per cent next year.

Going by the norms, the