The Finance Ministry announced on Wednesday that the government intends to raise 8.88 lakh crore through market borrowing from April to September 2023-24 to close the revenue gap and spur economic growth. According to an official statement, 8.88 lakh crore (57.5%) of the gross market borrowing of 15.43 lakh crore estimated for FY2023-24 will be borrowed in the first half (H1). The borrowing is expected to be completed in 26 weekly tranches of 31,000-39,000 crore, with the borrowing spread across 3, 5, 7, 10, 14, 30, and 40-year securities. Finance Minister Nirmala Sitharaman reduced the fiscal deficit, or the difference between expenditure and revenue, in the FY24 Budget to 5.9 percent of GDP, down from 6.4 percent in the current fiscal year.
Net market borrowing from dated securities is estimated to be 11.8 lakh crore to finance the fiscal deficit in 2023-24. Weekly borrowing through Treasury Bill issuance is expected to be 32,000 crores in the first quarter (Q1) of FY 2023-24, with a net borrowing of 1.42 lakh crore during the quarter, compared to a net borrowing of 2.40 lakh crore in Q1 of FY2022-23. Each weekly auction held during the quarter will see the issuance of 12,000 crore under 91 Dated Treasury Bills (DTBs), 12,000 crore under 182 DTBs, and 8,000 crore under 364 DTBs.
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