Government to Borrow Rs 3.9 Trillion via Treasury Bills in Last Quarter of FY24

The government has announced plans to raise ₹3.9 trillion through the issuance of Treasury Bills (T-bills) during the final quarter of the current financial year. The borrowing will be conducted over a 13-week period, with allocations of ₹1.68 trillion for 91-day T-bills, ₹1.28 trillion for 182-day T-bills, and ₹98,000 crore for 364-day T-bills.

Higher-than-Expected Borrowing

Market participants expressed surprise at the borrowing figure, which they said was higher than anticipated.
“We were expecting a lower number, with some expecting cuts in borrowing during the last quarter,” said a dealer at a state-owned bank.

Weekly Borrowing Schedule

The government plans to borrow ₹28,000 crore weekly for seven weeks and ₹33,000 crore weekly for six weeks during the final quarter. This borrowing schedule reflects the government’s strategy to meet its financial needs through short-term instruments.

Expert Opinions

Economists noted that the borrowing is on the higher side when competitive and non-competitive issuances are considered.
“On a net basis, the combined competitive and non-competitive supply will likely exceed the levels implied in the budget,” said Gaura Sen Gupta, Chief Economist at IDFC First Bank.