The government plans to raise Rs 50,000 crore in January and February this year, higher by Rs 15,000 crore announced earlier in December, as per the new calendar for sale of government securities released by the finance ministry on Tuesday.
This will take the total government borrowing to nearly Rs 2 lakh crore for the fiscal. The additional borrowings of Rs 15,000 crore will be used to fund the Rs 42000 crore of extra plan expenditure sanctioned in the second supplementary demand for grants tabled in Parliament last month.
?Consequent upon the approval of the second supplementary demands for grants by the Parliament and the fiscal stimulus packages announced by the government, it has become necessary for the Government of India to raise additional resources,? the finance ministry said in a statement.
In December, the finance ministry said it would borrow Rs 45,000 crore, out of which Rs 10,000 has already been raised. In a separate communication, the Reserve Bank of India said the Tuesday schedule would supersede the December?s calendar.
Accordingly the RBI has announced auction of 7.59% government bond 2016 worth Rs.7,000 crore, 6.3% government bond 2023 of Rs.4,000 crore and 7.50% government bond 2034 of Rs. 4,000 crore on this Friday. After this the government plans to auction bonds worth Rs 10,000 crore bonds of 5-20 year maturity in between January 12 and 16, another Rs 10,000 crore bonds of 10-20 years maturity between January 23 and 30. Between February 6 and 9, the Centre will raise another Rs 7,000 crore through auction of government securities of 5-19 years duration.
The final auction will be between February 13 and 20 of Rs 8,000 crore of bonds with 10-20 years maturity.