Government reduces borrowing target by Rs 10,000 crore

30 Sep 2022 , 08:43 AM

A day after doling out Rs44,762 crore for free ration for the needy, the government on Thursday slashed its market borrowing target for the current fiscal by Rs10,000 crore due to healthy tax collections.

According to a statement from the finance ministry, the government will borrow a total of Rs5.92 lakh crore between October and March of the current fiscal year, including Rs16,000 crore through the issuing of its first Sovereign Green Bonds.

In its budget for 2022—2023, the government predicted gross market borrowing of Rs14.31 lakh crore.

The government chose to borrow Rs14.21 lakh crore from this for 2022—2023.

To retain an additional subscription of up to Rs2,000 crore against each of the securities included in the auction notification, the government would continue to use its greenshoe option.

The amount raised under this option will be capped at 3 to 5% of the second half’s gross issuance and within the second half’s gross borrowing cap for 2022—23.

Up until September 17, total direct tax receipts increased 30% to above Rs8.36 lakh crore.

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