No Government Recourse To Wma Since April 25

The Union government has not taken recourse to ways and means advances (WMA) from the Reserve Bank of India (RBI) since April 25.

The RBIs ways and means advances to the government stood at Rs 3,491 crore on April 4. This figure went up to Rs 4,711 crore on April 11 and peaked to Rs 5,174 on April 18.

The government succeeded in vacating the WMA drawals when it privately placed with the RBI a 10-year paper aggregating Rs 5,000 crore at 13.05 per cent. This followed the auction of Rs 3,000 crore, 10-year paper, which was oversubscribed.

Under the WMA agreement signed between the government and the RBI, a ceiling of Rs 12,000 crore has been set for the first half and Rs 8,000 crore for the second half of the current fiscal. The overall accommodation limit was fixed Rs 1,00,000 crore for the whole year.

 

The governments has raised Rs 23,082.03 crore till June 9, amounting to 45 per cent of its gross budgeted target of Rs 52,693 crore. Of this, Rs 9,000 crore was raised by auctioning dated securities and another Rs 5,000 crore by privately placing 10-year paper with the RBI.

At the shorter end, the RBI has raised Rs 5,458.03 crore by auctioning 364-day treasury bills and Rs 2,350 crore through 91-day treasury bills. Besides, the first-ever auction of 14-day treasury bills secured bids worth Rs 1,274 crore.