duration extension
India will borrow additional 500 billion rupees ($7.79 billion) this year in a bid to maintain its spending as revenues slow in the $2.3 trillion economy.
The move comes a day after revenue collections from the recently-introduced goods and services tax slowed, raising fears of a fiscal slippage. The government plans to offset the additional borrowing by curbing treasury bills by more than 600 billion rupees, the finance ministry said in atweet.
The Reserve Bank of India announced the new borrowing calendar for government bonds until the end of the financial year on Mar. 31 in astatement on its website.
While higher borrowing of dated securities is being offset by the reduction in the planned treasury bills, "concerns regarding a mild fiscal slippage persist on account of the sequential dip in GST collections for November," said Aditi Nayar, principal economist at ICRA, a local unit of Moody’s Investors Service.
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