Centre revises borrowing calendar for H2FY21

by Nidhi Bhati

The central government has modified its borrowing calendar for the second half of current financial year to operationalise a special borrowing window meant for states to bridge their Goods and Services Tax (GST) revenue gap of Rs.1.1 trillion. With this revision, the total borrowing for the Centre for 2020-21 now stands at Rs.13.1 trillion as compared to Rs.12 trillion estimated earlier. For the second half, the government will now raise Rs.5.4 trillion in 22 weeks as against Rs.4.3 trillion planned earlier. Of this, Rs.560 billion has already been mobilised by the government. The Centre will raise the remaining Rs.4.9 trillion during the period 19 October 2020 to 31 March 2021. The additional amount for meeting the GST compensation shortfall shall be raised equally at the rate of Rs.550 billion under the three year and five year tenors.

1. https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=50521