The Reserve Bank of India (RBI), in session with the State Governments/Union Territories (UTs), on Friday proclaims that the quantum of complete market borrowings by the State Governments/UTs for the quarter January – March 2024, could be to the tune of ₹4,13,452 crore. Accordingly the RBI has drawn the weekly schedule of auctions to be held in the course of the quarter together with the identify of States/UTs who’ve confirmed participation and tentative quantities indicated by them, the central financial institution mentioned.
The RBI has additionally introduced to auction Government of India Treasury Bills price ₹3,93,000 for the Central authorities throughout this era.
Despite the extra tax devolution launched to the states in December 2023, the states’ indicative borrowing for This autumn FY2024 is appreciably increased than our forecast of ₹3.5 trillion. It is feasible that some states have indicated an quantity equal to their accessible headroom to borrow, regardless that their precise requirement could also be decrease. Two states alone have indicated an combination issuance of round ₹1.2 trillion in This autumn FY2024, boosting the general borrowing determine, mentioned Aditi Nayar, Chief Economist, Head – Research & Outreach, ICRA Ltd.
