Centre to borrow ₹4.88 lakh cr. in first half

Builds armoury to fight COVID-19

March 31, 2020 10:39 pm | Updated 10:39 pm IST - NEW DELHI

The Centre will borrow ₹4.88 lakh crore in the first half of the coming financial year 2020-21, or 62.56% of the gross borrowings of ₹7.8 lakh crore for FY21, Department of Economic Affairs Secretary Atanu Chakraborty said on Tuesday.

“The government is committed to meet its requirements for fighting COVID-19, whether on account of health issues, or on account of protecting the economy, and also providing necessary stimulus at any point of time. The entire borrowing was designed in that fashion,” Mr. Chakraborty told journalists here.

Cash management

He added the plan would enable the government to have sufficient amounts for cash management to meet such requirements.

The Centre proposes to revise its ways and means advances (WMA) limit to ₹1.2 lakh crore.

This will be reviewed on a need basis, according to Mr. Chakraborty.

The revised limit is significantly higher than the ₹75,000 crore limit imposed in the first half of 2019-20.

The government will roll out weekly G-Sec tranches of ₹19-21,000 crore, higher than the ₹17,000-crore tranches in 2019-20.

It plans weekly borrowings of ₹25,000 crore in the first quarter, with a net borrowing of ₹1,37,090 crore in the quarter, he said.

The Budget announcement for G-sec issuances through Debt Exchange Traded Fund route will be operationalised in the second half of 2020-21, and will be rolled out by initiating appointment of required intermediaries, he added.

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