Govt borrowings: FinMin to meet with RBI on March 18

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Published: March 11, 2016 7:17:58 AM

The net borrowing has been targeted at Rs 4.25 lakh crore for the next financial year.

The Reserve Bank of India (RBI) Governor Raghuram Rajan listens to a question during a news conference after the bi-monthly monetary policy review in MumbaiThe net borrowing has been targeted at Rs 4.25 lakh crore for the next financial year. (Reuters)

Officials of Ministry of Finance will hold a meeting with officials of Reserve Bank of India (RBI) on March 18 to decide the government’s market borrowing calendar for April-September, the first half of the next financial year.

In Union Budget for 2016-17, the government has set its gross borrowing at Rs 6 lakh crore, out of which Rs 10,000 crore will be raised through issuance of gold bonds. The net borrowing has been targeted at Rs 4.25 lakh crore for the next financial year.

After the presentation of Budget last week, bond prices had rallied after the government announced gross borrowing target in line with market expectations and maintained fiscal deficit target for next financial year at 3.5 per cent of the gross domestic product and 3.9 per cent of the GDP for this fiscal.

“The government is likely to borrow 60-65 per cent of its total scheduled borrowing in the first half of this financial year,” a senior finance ministry official said. He further added, “The Centre is maintaining high cash balance at present as it requires funds for redemption of a large amount of government securities maturing in April.” Government securities worth Rs 43,614 crore set to mature in April this year.

Department of Economic Affairs Secretary Shaktikanta Das will chair the meeting of the Monitoring Group on Cash and Debt Management. RBI officials including Deputy Governor HR Khan will be a part of the meeting.

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