Second bond issue in a week highlights fiscal push; loan to mature in 2037
PANAJI
In a bid to raise revenue towards developmental programmes, the State government will borrow Rs 150 crore through the sale of 12-year government stock (securities) on May 27.
This is the second auction of securities within a period of seven days. On May 20, the State raised Rs 100 crore through the auction of its securities.
According to the finance department, the proceeds of the loans will be utilised for financing capital expenditure in connection with the development programmes of the State government.
While in the case of the first auction, the stock was for a ten-year tenure, the upcoming auction stock will be of a 12-year tenure. The tenure of the stock will commence on May 28 and the loan will be repaid at par on May 28, 2037.
The government will repay the loan of Rs 100 crore, obtained on May 20, at par on May 20, 2025.
As against the set ceiling of Rs 4,500 crore for the financial year 2024-25, Goa had borrowed only Rs 1,050 crore.
Interestingly, the State’s substantial borrowing repayment to the tune of around Rs 3,300 crore will begin from the next financial year, 2025-2026.
To bridge the income-expenditure gap (fiscal deficit), the State borrows from the market through the issue of bonds known as State Development Loans (SDLs), which form a major part of its total outstanding liabilities.
