Govt to borrow Rs 6,000 cr more from market

To finance its increasing expenditure, the government said it will raise additional Rs 6,000 crore through market borrowings this month, taking the total debt to Rs 2,47,000 crore for the first half of this fiscal.

To finance its increasing expenditure, the government on Sunday said it will raise additional Rs 6,000 crore through market borrowings this month, taking the total debt to Rs 2,47,000 crore for the first half of this fiscal.

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"On a review of the emerging requirements of the Government, market conditions and other relevant factors", the government has decided to increase the issuance size of the dated securities from Rs 12,000 crore to Rs 15,000 crore in each of the two auctions during the period from May 15-29, an official release said.

In fact, the government today announced raising Rs 15,000 crore through four kinds of bonds on May 22.

While the bond carrying 6.07 per cent coupon rate and maturing in 2014 will fetch Rs 6,000 crore to the government, Rs 5,000 will be raised from the papers with 6.35 per cent coupon rate and maturity year of 2020. Two other bonds will raise Rs 2,000 crore each.

According to an indicative calendar, the government was earlier scheduled to raise Rs 12,000 crore in the next auction between May 22 and 29.This amount will also be raised to Rs 15,000 crore.

The government was earlier scheduled to borrow Rs 2,41,000 crore in the first half of this fiscal, which is most of the Rs 3,60,000 crore planned for the entire 2009-10.