New Delhi: The government plans to borrow 5.03 lakh crore rupees ($ 68.15 billion) in bonds during the October-March period to fund the income gap, he said in a statement on Monday. The government borrowed Rs 7.02 lakh crore during the period April-September. The Center had previously stated that it intended to borrow 12.06 lakh crore of rupees in bonds during the current fiscal year (fiscal year 2021-22).
He also said the second half projection also took into account requirements to release the balance amount to states due to the back-to-back loan facility instead of the GST (goods and services tax) offsetting over the course of the year. the year.
The Center added that the first half loan of Rs 7.02 lakh crore went smoothly with a weighted average yield of 6.19% and a weighted average maturity of 16.69 years.
The statement also pointed out that the second semester borrowing should be made in 21 weekly installments of Rs 24,000 / 23,000 crore. “The loans will be spread over securities of 2, 5, 10, 14, 30 and 40 years and variable rate bonds (tenor of 7-8 & 13 years). The proportion of loans with different maturities will be: 2 years: 4%; 5 years: 11.9%; 10 years: 28.4%; 14 years old: 17.9%; 30 years: 13.9%; and 40 years: 15.1%.
The Center also said it will issue another 7-8 year floating rate bond, in addition to 13 years. “Both will be issued on an alternate basis,” he added.
“To support temporary mismatches in the government account, the RBI set the Ways and Mean Advance (WMA) limit for H2 at Rs 50,000 crore,” the central bank said.
The Reserve Bank said it could trigger a new IPO of market loans when the government uses 75% of the WMA limit. The RBI retains the option of revising the limit at any time, in consultation with the Center, taking into account the circumstances at the time. The interest rate on WMA / overdraft will be for “WMA: repo rate; and for overdraft: 2% above the pension rate ”.
The repo rate is the rate at which the Reserve Bank lends to banks.