25 Sep , 2021 By : Kanchan Joshi
MUMBAI: At the weekly auction of government securities, the Centre has borrowed Rs31,000 crore through securities carrying tenures of five years, 13 years, 14 years, and 30 years, Care Ratings said in a note.
Total market borrowings by the Centre during 9 April -24 September of FY22 was at Rs7.02 trillion, 8% less than that in the corresponding period of FY21 and Rs12,652 crore less than the aggregate notified amount of the auctions.
The amount raised so far in FY22 is 58% of the total budgeted borrowing limit of Rs12.05 trillion for the fiscal year and 52% if the GST compensation to states, amounting to Rs1.58 trillion, is added to the borrowing limit for the financial year.
“Total devolvement to the primary dealers so far in FY22 is Rs0.76 trillion, which is 11% of the total borrowings. The five-year (56% share) and 10-year (38% share) securities accounted for the largest proportion of devolvement on primary dealers," Care Ratings said.
The quantum of over-allotment (green shoe option) thus far in FY22 totalled Rs0.6 trillion with the 14-year security accounting for 54% of the over-allotment. According to Care Ratings, auction of securities aggregating Rs67,000 crore has been cancelled so far in FY22 and 84% of this were of the 10-year securities.
“In the first half of FY22, the 14-year securities account for the largest share of borrowings at 22% of the total and is followed by the five- year security which has a share of 20%. The 10-year security accounts for 16% of the borrowings and 71% of the borrowings carry a tenure of less than 15 years," it said.
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