Mumbai, Feb 6: The Reserve Bank of India (RBI) has indicated that the government’s borrowing programme is currently moderate, giving the state flexibility to raise funds at reasonable costs, according to RBI Governor Sanjay Malhotra.
Governor Malhotra noted that a lower borrowing requirement helps maintain stability in the bond market and allows the government to secure financing without putting undue pressure on interest rates.
“The current borrowing programme enables the government to mobilize necessary resources efficiently while keeping financing costs in check,” he said, highlighting the importance of balanced debt management for economic growth and fiscal prudence.
A moderate borrowing requirement also supports liquidity in the financial markets, benefiting both public and private investors. By avoiding an oversupply of government securities, the RBI can help maintain stable yields and prevent unnecessary volatility in the bond market.
These remarks come at a time when investors and market participants are closely monitoring government borrowing trends, interest rate movements, and inflationary pressures, all of which impact the broader economy.
With careful planning and controlled borrowing, the government is expected to meet its fiscal needs while sustaining investor confidence and supporting the overall stability of India’s financial markets.