Government Bonds: Government will raise Rs 6.55 lakh crore from the market by issuing bonds in the second half, green bonds will be issued for the first time

Government Borrowing Plan Update: The Central Government will raise Rs 6.55 lakh crore through borrowing from the market in the second half of the current financial year 2023-24. The government will raise this debt by issuing bonds, in which green bonds worth Rs 20,000 crore will also be issued. The government has set a target of raising Rs 15.43 lakh crore through borrowing in the current financial year.

The Finance Ministry issued a press release saying that out of the target of raising total borrowing of Rs 15.43 lakh crore for the financial year 2023-24, the government will raise Rs 6.55 lakh crore between October and March in the second half of the current financial year, which This is 42.45 percent of the total Rs 15.43 lakh crore. During this period, the government will also issue sovereign green bonds worth Rs 20,000 crore. Due to the demand for long term securities in the market, securities with a tenure of 50 years will be issued for the first time. 

The government’s plan to borrow Rs 6.55 lakh crore from the market will be completed in a 20-week auction. The government will issue bonds with tenures of 3, 5, 7, 10, 14, 30, 40 and 50 years. The Reserve Bank of India raises funds for the government’s borrowing scheme by issuing bonds every week through bidding. Bids will be invited for government bonds worth Rs 30,000 to Rs 39,000 crore between October 2023 and March 2024. The last bond bid for the government’s borrowing scheme for this financial year will be invited on 16 February 2024.   

Of the borrowing fixed for the second half, 6.11 percent will be raised through bonds for a period of 3 years. 11.45 percent amount through 5 year bonds, 9.16 percent amount through 7 year bonds, 22.9 percent amount through 10 year bonds, 15.27 percent amount through 14 year bonds, 12.21 percent amount through 30 year bonds, 18.32 per cent amount will be raised through 40 year bonds and 4.58 per cent will be raised by issuing 50 year bonds.  

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