Govt lowers borrowing target for FY’23; to borrow ₹5.92 lakh cr in second half

A day after doling out 44,762 crore for free ration to poor, the government on Thursday cut its market borrowing target for the current fiscal by 10,000 crore in signs of buoyant tax collections.

In a statement, the finance ministry said the government will do total borrowing of 5.92 lakh crore during October-March period of the current fiscal, including from issuance of its maiden Sovereign Green Bonds of 16,000 crore.

The government had in Budget for 2022-23 projected a gross market borrowing of 14.31 lakh crore.

Of this, the government decided to borrow 14.21 lakh crore during 2022-23.

“Accordingly, the balance amount of 5.92 lakh crore (41.7 per cent of 14.21 lakh crore) is planned to be borrowed in the second half of the fiscal year 2022-23 through dated securities, including 16,000 crore through issuance of Sovereign Green Bonds (SGrBs) as per the announcement made in the Union Budget 2022-23,” it said.

The government will continue to exercise greenshoe option to retain an additional subscription of up to 2,000 crore against each of the securities indicated in the auction notification.

The amount raised through this option will be limited to 3 to 5 per cent of the gross issuance for second half and within the gross borrowing limit for the 2022-23.

The gross direct tax collections till September 17 grew 30 per cent to over 8.36 lakh crore.

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