INSUBCONTINENT EXCLUSIVE:
the corresponding borrowing burden on the market saw 10-year bond yields jump 11 basis points to close at 7.38 per cent.
Net borrowing,
after adjusting for repayments, is seen at Rs 4.48 lakh crore in FY20 almost unchanged from Rs 4.47 lakh crore as per the revised estimate
for FY19.
Gross borrowings were expected to be lower than Rs 7 lakh crore, but have been pegged at Rs 7.1 lakh crore, an increase of 24 per
cent from Rs 5.71 lakh crore in FY19.
While the slippage in fiscal deficit in FY19 from 3.3 per cent to 3.4 per cent was expected, the
appears to be through larger-than-expected market borrowing (net) for both FY19 and FY20
The bond markets have reacted to this news adversely
had cut its gross borrowing for the year by Rs 70,000 crore and stuck to the net borrowings planned in the budget to meet the fiscal deficit
target for the year and cool bond yields.
There is an increase in repayments for FY20 at Rs 2.36 lakh crore compared with Rs 1.48 lakh crore
