Why Modi's Govt is looking to frontload borrowing?

The government plans to borrow 57.55% of its full-year goal in the first half of FY24, which is called frontloading the borrowing programme.

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The borrowing amount will be finished in 26 weekly payments of between Rs 31,000 crore and Rs 39,000 crore.

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In the past few years also, Modi Govt. has been borrowing at 60–63%.

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The gross market borrowing to be Rs 15.43 trillion in FY24, 8.88 trillion (57.55%) to be borrowed in the 1st half.

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The money will be borrowed through bonds with terms of three, five, seven, ten, fourteen, thirty, and forty years.

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Announcements about the sale of sovereign green bonds (SGBs) will be made in the second half (H2) of FY24.

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Nirmala Sitharaman forecasts that Centre's fiscal deficit would drop from 6.4% of GDP in FY23 to 5.9% in FY24.

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