India FY24 gross borrowing seen at $181.2 bln - ICRA

ICRA

12/01/2023 08:29

** India may aim to gross borrow 14.8 trln rupees ($181.20 bln)
via sale of bonds in the next financial year, ICRA said
 
** "FY2024 Union Budget can appreciably enhance the GoI's
capital expenditure to Rs 8.5 trln-9 trln rupees and target a
lower fiscal deficit of 5.8% of GDP," chief economist Aditi
Nayar said in a note
** India aims to raise 14.21 trln rupees this year, with fiscal
deficit target of 6.4% of GDP
 
** Ratings agency expects gross borrowing from states at 9.6
trln rupees
 
** It expects net borrowing of centre at 10.4 trln rupees and
that of states at 6.8 trln rupees
 
** Elevated borrowing likely to push up the 10-year bond yield
to range of 7.4%-7.75% after Union Budget
 
 
 Expectations of FY24 fiscal deficit,                     
 borrowing targets in trillion rupees                     
 Brokerage      Fiscal deficit   Centre    Centre  State  State
                in percentage     gross     net    gross   net
 Goldman Sachs       5.9          16.8       13      8     5.3
 DBS                 5.9          15.5       -       -      -
 Societe            5.5-6           -        -       -      -
 Generale                                                 
 ICRA                5.8          14.8      10.4    9.6    6.8
 ($1 = 81.6780 Indian rupees)
 (Reporting by Dharamraj Dhutia)
 ((dharamraj.dhutia@tr.com))