homeeconomy NewsGovt cuts borrowing target for FY23 by Rs 10000 crore in sign of solid tax collections
Govt cuts borrowing target for FY23 by Rs 10000 crore in sign of solid tax collections
The Finance Ministry said the government will do total borrowings of Rs 5.92 lakh crore during the October-March period of the current fiscal, including from its maiden Rs 16,000-crore sovereign green bonds.
A day after doling out Rs 44,762 crore for free ration to poor, the government on Thursday (September 29) cut its market borrowing target for the current fiscal by Rs 10,000 crore in a sign of buoyant tax collections. In a statement, the Finance Ministry said the government will do total borrowings of Rs 5.92 lakh crore during the October-March period of the current fiscal, including from issuance of its maiden sovereign green bonds of Rs 16,000 crore.
The government had in Budget 2022-23 projected a gross market borrowing of Rs 14.31 lakh crore. Of this, the government decided to borrow Rs 14.21 lakh crore during 2022-23.
"Accordingly, the balance amount of Rs 5.92 lakh crore (41.7 per cent of Rs 14.21 lakh crore) is planned to be borrowed in the second half of the fiscal year 2022-23 through dated securities, including Rs 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 its greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notification.
The amount raised through this option will be limited to 3-5 per cent of the gross issuance for the second half and within the gross borrowing limit for the 2022-23. The gross direct tax collections till September 17 grew 30 percent to over Rs 8.36 lakh crore.
(Edited by : Shoma Bhattacharjee)
First Published: Sept 29, 2022 7:30 PM IST
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