• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:10:20 AM IST | Saturday, Feb 04, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > In Other News > Government to maintain borrowing plan after lowering tax
In Other News
Government to maintain borrowing plan after lowering tax
By  
DECCAN CHRONICLE.   , Published : Sep 25, 2019, 2:07 am IST | Updated : Sep 25, 2019, 2:07 am IST

The new borrowing schedule will be announced on September 30: Officials.

The move to maintain the borrowing plan will be seen as a positive for bonds, which have declined in six of the past eight weeks, after a cut in corporate tax rates stoked concerns a shortfall in revenue will be met through higher debt sales.
The move to maintain the borrowing plan will be seen as a positive for bonds, which have declined in six of the past eight weeks, after a cut in corporate tax rates stoked concerns a shortfall in revenue will be met through higher debt sales.

New Delhi: The  government will maintain its borrowing plan for the remainder of this fiscal year, an official told reporters in New Delhi.

Prime Minister Narendra Modi’s administration will likely sell about Rs 2.68 lakh crore ($37.8 billion) of bonds in the six months beginning October 1, as part of its record Rs 7.1 lakh crore full-year plan. India had a target to borrow Rs 4.42 lakh crore in the fiscal first-half started April.

A decision on the nation’s maiden foreign-currency sovereign bond sale, announced first in July, has not been made, the official said, asking not to be identified citing rules.

The move to maintain the borrowing plan will be seen as a positive for bonds, which have declined in six of the past eight weeks, after a cut in corporate tax rates stoked concerns a shortfall in revenue will be met through higher debt sales. A Bloomberg survey of economists last week indicated the budget deficit may widen to a four-year high.

The new borrowing schedule will be announced on Sept. 30, the official said. The delay in announcement is to help banks avoid any mark-to-market losses.

The yield on the 10-year bonds rose three basis points to 6.77 per cent as of 3:50 p.m. in Mumbai after dropping to 6.75 per cent on reports the plan will be kept the same.

Yields on the benchmark 2029 notes surged as much as 24 basis points on Friday, the most since February 2017, after the stimulus measures. Flip-flops over the government’s plans for a $10 billion overseas debt sale added to the pain as the issuance was meant to shift abroad a part of the borrowings.

While Finance Minister Nirmala Sitharaman has said there were no plans to revise the borrowing target for now, traders remain cautious. Standard Chartered is forecasting the need for as much as Rs 80,000 crore of new debt on top of the originally planned amount for the full year.

Last week’s tax cut, estimated to cost Rs 1.45 lakh crore in lost revenue, may push the fiscal deficit wider to 3.9 per cent of GDP for the year to March, compared with a goal of 3.3 per cent, according to the Bloomberg poll.

end-of
Tags: 
prime minister narendra modi, foreign-currency, corporate tax, budget
Location: 
India, Delhi, New Delhi
Latest From In Other News
Kaleshwaram Irrigation Project. Picture credits : ANI

NGT says environmental clearance for Kaleshwaram violates law

Internet and Mobile Association of India too had sought clarification on the issue. (Photo: PTI)

DPIIT to soon issue clarification on 26 pc FDI in digital media sector

In financial year 2018-19 the proportion of gross non-performing assets (NPAs) to total loans decreased to 9.1 per cent compared to 11.2 per cent in 2017-18.

RBI sees corporate governance 'fault lines' at some lenders

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham