Having raised Rs 13,000 crore (Rs 130 billion) till May, the Centre now plans to mop up another Rs 10,000 crore (Rs 100 billion) this week as part of its Rs 1,50,818 crore (Rs 1,508.18 billion) market borrowing programme for 2004-05.
Of the Rs 10,000 crore debt issue that would be auctioned by the Reserve Bank of India on behalf of the government on June 3, Rs 4,000 crore (Rs 40 billion) would be through 24-year papers and another Rs 6,000 crore (Rs 60 billion) by way of 12-year securities.
"The government has completed Rs 13,000 crore of market borrowings, constituting 8.6 per cent of its gross borrowing of Rs 1,50,818 crore," PNB Gilts said on Tuesday.
The net borrowing stood at Rs 3,988 crore (Rs 39.88 billion) constituting 4.4 per cent of the budgeted Rs 90,502 crore (Rs 905.02 billion) for 2004-05, it said.
Commenting on the forthcoming issues, PNB Gilts said: "Though the middle segment (12-year paper) continues to attract market interest, longer dated papers (24-year paper) may find it difficult to attract much interest amidst uncertain interest rate outlook."
While the Centre is going slow on its market borrowing in the initial months, the states are on a borrowing spree.
Last fortnight, 19 states mopped up a total Rs 8,471 crore (Rs 84.71 billion) through 10-year papers, PNB Gilts said.
The states had targeted Rs 8,000 crore (Rs 80 billion) mop up for the debt swap scheme but received a total subscription of Rs 9,350 crore (Rs 93.50 billion), of which it accepted Rs 8,471 crore, it said.
The debt issues of 11 states were oversubscribed but they retained upto 20 per cent excess demand. Tamil Nadu and Kerala raised Rs 380 crore (Rs 3.80 billion) each as part of their normal market borrowing.
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