Overview:

• The gross market borrowing that is estimated for the next financial year is Rs 14.31 lakh crore.
• The planned Rs 8.45 lakh crore borrowing will be targeted in the April to September period.
• 60 percent of the borrowing for FY 2022-23 would be completed in the fiscal year’s first six months.
• For 2021-22, the gross borrowing was Rs 12,05,500 crore.

The objective of the borrowings

The borrowing’s objective is to push the capital expenditure due to which there will be a multiplier effect on the country’s economy.

About Gross borrowings through dated securities

Rs 14,95,000 crore will be the gross market borrowing through dated securities for 2022-23. Considering the month of January 2022’s switch operations, for FY 2022-23 the gross market borrowing through dated securities is expected to be Rs 14,31,352 crore.

How will the borrowing be conducted?

In 26 weekly tranches of Rs 32,000-33,000 crore, the borrowing will be completed. The borrowings will be divided into 2, 5, 7, 10, 14, 30, and 40-year securities as well as Floating Rate Bonds (FRBs) of different tenors. Long-term securities of 14, 30, and 40 years, will account for a major portion of the borrowings. On a fortnightly basis, the FRBs will be issued.