Government borrowing News

In a lecture shared by the RBI late on Monday, Acharya said India`s borrowing relative to its output has ranged from 67% to 85% since 2000 and has outpaced many emerging markets including China.

The 10-year bond yield dropped to as much as 7.3565 percent from 7.62 percent, its lowest since Jan. 29, andmarking its biggest intraday fall since December 9, 2013.

In the Budget for 2017-18, gross and net market borrowing were pegged at Rs 5.80 lakh crore and Rs 4.23 lakh crore respectively with Rs 3.48 lakh crore being raised (net) from dated Government securities and Rs 2,002 crore from T-bills, a Finance Ministry statement said.

To finance the fiscal deficit for the current financial year, the Budget has pegged gross borrowing at Rs 5.8 lakh crore and net borrowing at Rs 4.25 lakh crore.

Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday the central bank holds government bonds worth 8 trillion rupees ($120.54 billion) alongside record-high foreign exchange reserves

Finance Ministry and Reserve Bank officials will meet on March 18 to decide on the borrowing calendar of the government for April-September period of the next fiscal.

The government can borrow more to revive investment cycle even at the cost of marginally slipping from the projected fiscal deficit, as that will lead to higher-than-expected growth in the medium-term, says a report.

Government on Monday said it will borrow Rs 1.96 lakh crore from markets in the July-September quarter of the current financial year, 2015-16.

India attracted 49.63 billion rupees ($814.61 million) worth of bids from foreign investors in its auction of government debt limits on Thursday, much higher than the 30.17 billion rupees on offer, according to two dealers.