The government has borrowed 55% more by this fiscal year

Mumbai: The second wave of the pandemic has forced many states to declare a complete blockade for almost two months, so the center has borrowed Rs 210,000 by this fiscal year. Than a year ago.
However, thanks to the clever yield management by the central bank, the only salvation was the low cost of financing. According to Madan Sabnavis, chief economist at Care Ratings, it’s significantly lower than last year, paying only 6.08%, the same as last week.
He said market borrowing of Rs 210,000 was 17.5% of the annual budgeting of Rs 12.55 million and 30% of the first half of Rs 7.24 million.
He further stated that the total amount of borrowings by the center so far this fiscal year was a whopping 55% higher than the same period last year, due to the blockages in most states and the resulting impact on revenue recovery. Said.
In the latest borrowing on Friday, the government borrowed only 26,550 thousand rupees out of the 32,000 thousand rupees notified. The RBI approved a total bid worth Rs 19,114 thousand and the bid of Rs 7,437 thousand was delegated to the primary dealer.
However, the total borrowing amount for the week was 5.5 billion rupees more than the notified amount, but 30% less than the previous week. Total market borrowing reached Rs 110,000 in May, an increase of Rs 6.545 billion over April.
So far this year, the amount exercised under the green shoe option has increased to 23,398 million rupees and the total amount transferred to the primary dealer is 18,363,000 rupees.
The weighted average yield for this auction remained unchanged at 6.08%, the same as last week.
Of the total borrowings for the current fiscal year, 24% are 14-year GSec, 17% are 5-year bonds and 15% are 10-year bonds. The two-year bond, which matures in 2023, resulted in an oversubscription of Rs. 550 million.

The government has borrowed 55% more by this fiscal year

Source link The government has borrowed 55% more by this fiscal year

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