Bajaj says that the center will borrow heavily this year

A top finance ministry official said that the government will put forward a large part of its borrowings for 2021-22, and is confident that the Reserve Bank of India will help raise funds at reasonable rates.

Economic Affairs Secretary Tarun Bajaj said, “In the budget, we announced 500, gross borrowings of 12,05,500 crores and net borrowings of 19,37,221 crores.”

He said, “In the first half of the year, for which the detailed calendar is being released today, we will earn ₹ 7.24 lakh crore … which is 60.06% of the gross issuance in 2021-22.”

Shri Bajaj said that the loan will be done in a tenure ranging from two years to 40 years. He said that any review of the lending scheme would be conducted only later in the year, depending on how the tax and non-tax revenue streams apply.

Despite record government borrowings in 2020-21, yields ‘generally remained very stable’, Mr Bajaj said, but admitted “there was an issue in some auctions that took place in the month of March.”

Was the government concerned about the possibility of paying higher rates for its borrowings in the coming year due to the auction of some auctions to be canceled in the coming year, the secretary said: “I kept in touch with the RBI as usual Hoon and I again meeting with the central bank before announcing a lending calendar.

“I am sure they will take appropriate action in the market to ensure that the yields remain within reasonable limits and I have no reason to believe anything else,” he said.