The massive borrowing plan announced by the government in the FY23 Union Budget may get trimmed by Rs 63,500 crore. This is because the Reserve Bank of India, earlier, had announced that the government has opted for conversion or switch of securities with market participants.
The government has decided to switch securities maturing in FY23, FY24, and FY25, and issuing fresh ones of equivalent value. Of the total switch amount, Rs 63,500 crore worth of bonds would mature during the next financial year.
On Tuesday, the government had announced a Rs 14.95-trillion gross borrowing plan for FY23 in the Budget.