look news india
New Delhi, 26 September (HS). The Finance Ministry on Thursday said that the country is on the path to achieve 6.5 to 7.0 percent gross domestic product (GDP) growth rate in the current financial year 2024-25. According to the monthly economic review report of the ministry, this is indicated by important data like Goods and Services Tax (GST), PMI, electricity consumption till August 2024. At the same time, the central government has planned to raise Rs 6.61 lakh crore from the auction of dated securities in the second half to accelerate economic growth.
The Finance Ministry has said in the Monthly Economic Review Report released for August that analysis of recent developments shows that the foundation of macroeconomic stability in the country is strong. According to the report, India's fundamentals are strong with stable growth, investment, employment and inflation trends, a strong and stable financial sector and a strong external account including satisfactory foreign exchange reserves.
The ministry's monthly economic review for August said that one challenge on the macroeconomic front is to deal with the continuing uncertainty in global economic prospects. According to this report, amid fears of slowdown in developed economies and ongoing challenges at the global level, we may have to face a cycle of policy rate cuts in various countries of the world.
It has been said in the report that the GDP growth of 6.7 percent in the first quarter (April-June) of the current financial year 2024-25 and the indications from important data till August are indicating that the economic growth rate in the current financial year will be 6.5 to 7.0. Will remain percentage.
At the same time, the Finance Ministry has said in a statement that the Central Government will raise Rs 6.61 lakh crore from the auction of securities dated in the second half (April-September) to accelerate economic growth while maintaining its borrowing target for the financial year 2024-25. Plan has been made to raise Rs. The ministry said that out of the gross market debt of Rs 14.01 lakh crore set in the Union Budget for the current financial year 2024-25, there is a plan to raise Rs 6.61 lakh crore (47.2 percent) by issuing securities in the second half. This also includes Government Green Bonds (SGRB) worth Rs 20 thousand crore.
According to the ministry, gross market borrowings of Rs 6.61 lakh crore will be raised through 21 weekly auctions. At the same time, market borrowing will be spread across securities of three, five, seven, 10, 15, 30, 40 and 50 years. Among these, the share of loans with maturity period of three years will be the lowest at 5.3 percent, while the share of securities with maturity period of 10 years will be the highest at 24.8 percent. The ministry said it will reserve the right to exercise the greenshoe option to retain additional subscription up to Rs 2,000 crore against each security indicated in the auction notifications. Borrowing of Rs 19 thousand crore is expected to be raised by issuing treasury bills in the third quarter of the current financial year 2024-25.
It is noteworthy that out of the estimated gross market borrowing of Rs 14.01 lakh crore for the current financial year 2024-25, Rs 7.4 lakh crore i.e. 52.8 percent has been raised in the first half. At the same time, the gross borrowing estimate in the last financial year 2023-24 was Rs 15.43 lakh crore, which was the highest till date.
