The Finance Ministry said the it would borrow Rs 5.03 lakh crore in the second half of the current fiscal year. The finance ministry's release stated that the current projection factors in the requirement for release of the balance amount to states on account of back-to-back loan facility in-lieu of GST compensation this year.
A total market borrowing of Rs 12.05 lakh crore was projected for the fiscal year 2021-22 in the Union Budget. The effective borrowing in H1 was Rs 7.02 lakh crore.
"Borrowing in H1 has been completed smoothly with weighted average yield at 6.19 % and weighted average maturity at 16.69 years. In H1, good demand for Government bonds was seen from all major investor segments and the yields have remained stable," the release stated.
The release further stated that the government will continue to carry out switching of securities to smoothen redemptions in the coming years.
The Union Budget announced this year, pinned net borrowing at Rs 9.37 lakh crore for the current financial year. Repayment for past loans, which is a component of gross payments, was pegged at Rs 2.80 lakh crore.
The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
The Budget has pegged fiscal deficit at 6.8 per cent for the next fiscal, down from 9.5 per cent of the GDP in the current financial year.
(With inputs from PTI)