Centre to borrow Rs 6.61 Lakh Cr in H2 FY25, including Rs 20,000 Cr of SGrBs, ET BFSI

The Government of India plans to raise Rs 6.61 lakh crore through market borrowings in the second half (H2) of FY 2024-25, including Rs 20,000 crore through the issuance of Sovereign Green Bonds (SGrBs), the Ministry of Finance announced on Thursday.

The borrowing will be conducted through 21 weekly auctions, with securities spread across various maturities ranging from 3 to 50 years.

This borrowing plan is part of the total gross market borrowing of Rs 14.01 lakh crore budgeted for FY 2024-25. The Government had already raised Rs 7.50 lakh crore in the first half (H1) of the fiscal year, including Rs 12,000 crore via SGrBs, which accounted for 53.08% of the total budgeted borrowing.

Comparison of H1 and H2 Borrowing of FY25

Details	H1 of FY25	H2 of FY25
Gross Market Borrowing	Rs 7.5 Lakh Crore	Rs 6.61 Lakh Crore
Total Borrowing for FY25	Rs 14.1 Lakh Crore	Rs 14.1 Lakh Crore
overeign Green Bonds	Rs 12,000 Crore	Rs 20,000 Crore
Weekly Auctions	26	21
Maturity Wise Distribution
3-Year	4.80	5.3
5-Year	9.60	10.6
7-Year	8.80	7.6
10-Year	25.60	24.8
15-Year	13.87	13.2
30-Year	8.93	12.1
40-Year	19.47	15.9
50-Year	8.93	10.6
Treasury Bills Issuance (Q1/Q3)	Rs 27,000 Crore	Rs 19,000 Crore
Ways and Means Advances (WMA)	1.5 Lakh Crore	50,000 Crore

Borrowing Distribution

The borrowing in H2 will be strategically spread across various maturities to ensure efficient debt management and reduce refinancing risks. The distribution of the borrowing, including SGrBs, across different maturities is as follows:

India’s borrowing in the second half of FY 2024-25 will be distributed across various maturities: 5.3% will be raised through 3-year securities, 10.6% through 5-year securities, and 7.6% through 7-year securities. The largest share, 24.8%, will be allocated to 10-year securities. Borrowing through 15-year and 30-year securities will account for 13.2% and 12.1%, respectively. For longer-term obligations, 15.9% will be raised through 40-year securities, and 10.6% through 50-year securities.

Focus on Sovereign Green Bonds

The government shall issue Rs 20,000 crore in Sovereign Green Bonds in H2, compared to Rs 12,000 crore in H1.

Treasury Bills and Ways and Means Advances (WMA)

The government will also continue to issue Treasury Bills, with a planned issuance of Rs 19,000 crore in Q3, down from Rs 27,000 crore in Q1. Additionally, the limit for Ways and Means Advances (WMA) has been set at Rs 50,000 crore for the second half of FY25, compared to Rs 1.5 lakh crore in the first half.

The government projected a gross market borrowing of Rs 15.43 lakh crore for the fiscal year 2023-24 which is more than the current fiscal’s plan.