State Governments/Union Territories Expected to Raise ₹4,13,452 Crore via Market Borrowings in Q1 2024

Indicative Calendar Revealed by RBI

The Reserve Bank of India (RBI), in conjunction with State Governments and Union Territories (UTs), has unveiled an indicative calendar for market borrowings, projecting an expected total of ₹4,13,452 Crore for the period between January and March 2024.

Quarterly Breakdown

- January's Borrowings: The month commences with Andhra Pradesh leading the way, slated to raise ₹3000 Crore, followed by varied contributions from Bihar, Gujarat, Karnataka, Punjab, and Rajasthan, summing up to ₹16,000 Crore for the week.

- February's Projections: The following month continues the trend with diverse states participating in weekly auctions, anticipating borrowings ranging from ₹23,232 Crore to ₹45,160 Crore, contributing to a significant chunk of the quarterly borrowings.

- March's Anticipated Borrowings:As the quarter nears its end, states such as Tamil Nadu, Rajasthan, Uttar Pradesh, and West Bengal are projected to borrow substantially, adding up to ₹38,166 Crore for the week starting March 5, 2024.

RBI's Approach and Modifications

The RBI assures a non-disruptive auction process, intending to evenly distribute borrowings throughout the quarter while considering prevailing market conditions and other relevant factors. The final borrowings and participating states will be confirmed through press releases a few days before the scheduled auctions, subject to government approvals and market conditions. RBI retains the right to make adjustments to auction dates and amounts in consultation with the concerned State Governments and UTs.

This indicative calendar sets the tone for the anticipated market borrowings by State Governments and UTs in the first quarter of 2024, indicating a substantial financial activity across various regions, subject to dynamic market conditions and regulatory approvals.