Monday, 26 March 2018

Govt roadmap shows less borrowing in H1 than last year -The Total Investment & Insurance Solutions


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26 March  2018
 
Borrowing(The Total Investment & Insurance Solutions)


The government on Monday unveiled a Rs 2.88 lakh crore market borrowing roadmap for the first half of FY19, which would be 22.6 per cent lesser than Rs 3.72 lakh crore raised during the same period last financial year. The move will help maintain the high liquidity position in the market. 

The borrowing target for the first half would amount to 47.56 per cent of the government's budgeted gross borrowing target for the financial year. 
A senior finance ministry official said the government would re-align 10-15 year bonds with 1-4 year bonds. The Total Investment & Insurance Solutions

The next fiscal the G-Sec buyback would be reduced by Rs 25,000 crore. In addition to this, the government will withdraw up to Rs 1 lakh crore from the National Small Savings Fund (NSSF) -- Rs 25,000 crore more than in the current financial year -- to fund the fiscal deficit, PTI reported. 

This could reduce the overall market borrowing programme of the government for the entire fiscal, the official added. The Total Investment & Insurance Solutions

A total of 25 per cent of the bonds will be issued in 5-9 year bucket and 29 per cent in the 10-14 year bucket. About 23 per cent of the bonds will be issued in the 20-year plus bucket. Thirteen t-bill issuances of Rs 15,000 crore each are planned in the first quarter of the year, he said. 

The government also plans to issue inflation-indexed bonds linked to the consumer price inflation. The official expects Rs 1 lakh crore from small savings will be used to fund fiscal deficit. 

Active consultations are on with the RBI on failing FPI investment limits in bonds, he said. The Total Investment & Insurance Solutions

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