NEW DELHI:The government on Monday unveiled a Rs 2.88 lakh crore market borrowing roadmap for the first half of FY19, which would be 22.6 per cent lesser than Rs 3.72 lakh crore raised during the same period last financial year. The move will help maintain the high liquidity position in the market.
The borrowing target for the first half would amount to 47.56 per cent of the government's budgeted gross borrowing target for the financial year.
A senior finance ministry official said the government would re-align 10-15 year bonds with 1-4 year bonds.
A total of 25 per cent of the bonds will be issued in 5-9 year bucket and 29 per cent in the 10-14 year bucket. About 23 per cent of the bonds will be issued in the 20-year plus bucket. Thirteen t-bill issuances of Rs 15,000 crore each are planned in the first quarter of the year, the official said.
The government also plans to issue inflation-indexed bonds linked to the consumer price inflation. The official expects Rs 1 lakh crore from small savings will be used to fund fiscal deficit.
Active consultations are on with the RBI on failing FPI investment limits in bonds, he said.