The Union finance ministry and the Reserve Bank of India (RBI) on Tuesday finalised Rs 4.88 lakh crore government’s borrowing plan for the first half of the new financial year 2020-21 that starts from Wednesday amid a lockdown to stave off the spread of coronavirus.
“Out of gross borrowing of Rs 7.8 lakh crore, it is proposed to borrow 62.56% in H1, FY-21 as compared to 62.25% in H1, FY-20,” economic affair secretary Atanu Chakraborty said.
The government’s borrowing calendar for the first half of previous financial year ended March 31, 2020, was Rs 4.42 lakh crore.
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The borrowing calendar announced on Tuesday proposes that the government’s weekly borrowing will be around Rs 19,000 crore. It was Rs 17,000 crore in the first half of 2019-20.
The government had planned to borrow Rs 5.36 lakh crore for FY21 in the Union Budget 2020.
“Net market borrowings for the year 2019-20 would be Rs 4.99 lakh crore and for the year 2020-21, it would be Rs 5.36 lakh crore,” Union finance minister Sitharaman had said during her budget speech.
The decision has been taken after a meeting between officials of the finance ministry and RBI through video conference, officials said.
RBI is the government’s banker and debt manager.
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