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RBI-FinMin to meet on Mar 31; to decide H1FY21 borrowing plan

This is the first time the Finance Minister and the Reserve Bank of India (RBI) would discuss this matter through video conferencing as the country undergoes a lockdown

twitter-logo BusinessToday.In        Last Updated: March 30, 2020  | 08:25 IST
RBI-FinMin to meet on Mar 31; to decide H1FY21 borrowing plan
In the Union Budget 2020, the government had planned to borrow Rs 5.36 lakh crore for FY21.

The Finance Ministry and the central bank of India will decide the government's borrowing plan for the first half of FY21 on Tuesday, March 31.

This is the first time the Finance Minister and the Reserve Bank of India (RBI) would discuss this matter through video conferencing as the country undergoes a lockdown.

There are chances the Government of India would resort to front-load its borrowing plan to put the economy on track, hit by coronavirus. After the RBI-Finance Ministry meeting, the borrowing calendar for issuance of dated government securities and short term papers would also be announced.

In the Union Budget 2020, the government had planned to borrow Rs 5.36 lakh crore for FY21. It is higher than the  Rs 4.99 lakh crore estimated for the current financial year, which is ending on March 31. "Net market borrowings for the year 2019-20 would be Rs 4.99 lakh crore and for the year 2020-21, it would be Rs 5.36 lakh crore," Finance Minister Sitharaman said during budget 2020.

Besides, the goss borrowing, which includes repayments and past loans, would be Rs 7.8 lakh crore for FY 21. The repayment of past loans has been pegged at Rs 2.35 lakh crore for FY21. The government raises finds from the market to fund its fiscal deficit through dated securities and treasury bills.

(With PTI inputs)

Also read: Coronavirus impact: Why Bhopal firm's 60,000 bottles per day sanitiser plant lies idle

Also read: Bank of India loans get cheaper; external benchmark lending rate cut by 75bps

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