The outstanding stock of central government bonds in India has crossed the ₹100-lakh-crore mark, reflecting the increase in government borrowing since 2020. The surge in borrowing is attributed to the Covid crisis and efforts to stimulate the economy through state spending. While the Centre aims to reduce fiscal deficit, previous bond redemptions are expected to keep gross borrowing elevated. In the current fiscal year, government bonds worth ₹3.86 lakh crore are set to mature, highlighting the government’s high borrowing programme.
Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. U.S. jobs data due later in the day is the next major focus.
