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State governments and Union Territories plan to raise Rs 2.37 trillion through market borrowings in Q3FY24: RBI

Sep 28, 2023

By: BlinkX Research Team

According to the Reserve Bank of India, state governments and Union Territories (UTs) plan on borrowing Rs 2.37 trillion from the market during the third fiscal quarter of 2023 (October to December). 

ICRA Chief Economist Aditi Nayar stated that the indicated borrowing amount for Q3FY24 is generally in line with expectations. According to ICRA's prediction of Rs 9.5 trillion in annual issuance, Rs 3.5 trillion in issuance might occur in Q4.

The states and UTs shall raise Rs 74,842 crore in October, Rs 76,200 crore in November, and Rs 86,221 crore in December 2023, according to the indicative calendar of borrowings.

There may be a limited drawback to the amount of issuance the states have indicated for Q3FY24 given that central tax devolution in H2FY24 is unlikely to show considerable growth over the previous year (FY23).