Government to keep back bond borrowings for current fiscal on robust revenue.

India is likely to keep its market borrowing plan for the financial year intact. The authorities are planning to hold a discussion on whether the target can be reduced or not.

Sources revealed that the Government is likely to adhere to its borrowing target of 14.3 trillion rupees USD 179 billion for the year to March 2023. However, there is a chance it might get lowered following the rise in revenues.

Finance Ministry is likely to hold a discussion in this regard with the Reserve Bank of India by the end of this month.

The consultation will be done in order to take decision on the borrowing calendar for October-March, which would also include the plan for the country’s first sovereign green bond issuance.

According to a report published in the Business Standard, India’s tax revenues are growing at a healthy pace, driven by domestic consumption after a wider reopening of the economy from pandemic curbs. Net direct tax collections until mid-September rose 23 percent from a year earlier, while the mop-up from goods and services tax during April to August was 33 percent higher than the year-ago period. That is easing pressure on federal finances at a time the government had to provide additional resources for food and fertilizer subsidies.

Deputy general manager for treasury at South Indian Bank Ritesh Bhusari said, “In case there is lower borrowing than planned in the second half of the year, it will be a big relief and a surprise for the market."

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