Since the scope of supporting growth through fiscal and monetary policy is fairly limited, economic revival will ultimately depend on policy reforms
RBI waiting for Budget numbers has surprised the bond market
For 2019-20, the budget estimate for the FCI is Rs 1,51,000 crore, of which Rs 1,06,000 crore has been released till November 15, he added.
All eyes are now on the government's financing plans for the fiscal second half due today, with traders concerned that the authorities could increase bond sales beyond the Rs 2.68 trillion set earlier
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
Nurturing a relationship with foreign investors is particularly important when it comes to the long-term objective of borrowing in times of a calamity
While sovereign bonds may help India get loans overseas at lower interest rates they are susceptible to exchange rate fluctuations
As per the Union Budget, the gross borrowing was pegged at Rs 7.1 trillion for 2019-20, higher than Rs 5.71 trillion estimated for the ongoing fiscal
This will allow the government to keep the borrowing space free for the higher demand by the state governments
Centre took Rs 1,002 bn from here in 2017-18, sharply up from Rs 904 bn a year before and Rs 123.6 bn in FY14
In Q3, too, PSBs had to make significant provisions (hence mark-to-market losses) due to a sharp rise in yields
The borrowing calendar with details of weekly issue of bonds by the RBI will also be available at the beginning of the next week, the Centre said
Jolt to state-owned banks is as disturbing as the lack of clarity on signals to the bond market
The global brokerage expects Finance Minister Arun Jaitley to hold to the fiscal deficit target of 3.2% of GDP
Gross borrowing for FY18 is Rs 5.8 lakh crore; net borrowing would be Rs 4.25 lakh crore