Page 3 - Government Borrowing

Fiscal math of the imponderables

Growth holds the key to the government's fiscal deficit slippage

RBI converts less than a third of Rs 30K-crore bonds into long securities

Bond dealers said the market wanted the RBI to offer them higher coupon for the switch, as the source security is maturing just next month.

Imposing pointless conditions on loans will stifle States: Tamil Nadu CM

Palaniswami was referring to conditions put forward by Centre to raise borrowing limits from 3% to 5% of GSDP for this financial year

Govt to switch Rs 30,000 crore of bonds for longer tenure securities

Such switches happen to enable the government repay the loans at a later date to ease the strain on the exchequer in the immediate term.

Best of BS Opinion: Rs 20-trn stimulus, govt's borrowing plan, and more

Here's a selection of Business Standard opinion pieces of the day

A day after, bond yield closes flat at 6.16% amid liquidity surplus

Given the plan to borrow an additional Rs 4.2 trillion from the market, yields will show a tendency to move up. But, the huge liquidity in the system kept the rise in check, bond dealers said.

Govt borrowing may spike yields, dent gilt fund returns due to MTM impact

Some market participants say there is still room for upside for long-duration products

Yields jump 20 bps on borrowing target hike, banks stem free fall

The government had surprised everyone with a revised borrowing programme of Rs 12 trillion, against Rs 7.88 trillion originally planned

Best of BS Opinion: Govt's borrowing plan, coronavirus outbreak, and more

Here's a selection of Business Standard opinion pieces of the day

Beyond borrowings

Govt must present a credible macroeconomic picture

Bond yields expected to jump 15-20 bps on govt's extra borrowing

The excess borrowing will, however, ease the pressure on the RBI's liquidity operation as banks will absorb the excess G-Secs

Covid-19 impact: States borrow Rs 12,128 cr from bond market at lower rates

The cut-off yield for 10-year state development loans was at 7.60-7.65 per cent, whereas the 10-year government securities closed at 6.50 per cent.

Centre sails through this fiscal's first borrowing of Rs 19,000 crore

The 10-year bond yields closed at 6.49%, which is more than 200 bps above the policy repo rate

Coronavirus impact: Centre's borrowing won't be cheap this time

Wary of supply, bond dealers asked for sharp increase in rates from state governments during Wednesday's auction.

Cash-starved and desperate, states borrow at steep rate in lockdown

According to the schedule, 19 states had lined up to borrow up to Rs 37,500 crore, but they managed to raise Rs 32,560 crore.

Coronavirus impact: States to step up borrowings, April may see 60% jump

The states expect to borrow Rs 55,225 crore from the markets in April, against Rs 34,472 crore raised last year.

Questions about borrowing

The funding need can change materially

Govt may slash borrowing from market in April amid lockdown: Report

Private placement of bonds would ensure the government gets the money it needs for its expenditure while there is no impact on the market

Bonds rally as govt keeps borrowing programme limited to Rs 7.1-trn

The government borrows from the market for the buyback, but it is not doing so for the next year

Budgetary over-reach: There is a price for trying to do too much in Budgets

The larger economy suffers more than the central govt, as New Delhi is allowed to get away with behaving arbitrarily and then hiding the reality behind bogus numbers, writes T N Ninan