RBI Cancels Government Securities Auction On February 18

New Delhi: Reserve Bank of India has cancelled an public sale of presidency securities (G-Secs) price Rs 24,000 crore scheduled to be held on February 18. "On review of the government of India's cash position, it has been decided, in consultation with Reserve Bank of India, to cancel the auction of all the securities scheduled to be held on February 18, 2023, as per the issuance calendar dated September 27, 2021, for dated securities during the second half of the current financial year 2021-22," Finance Ministry had said in a notification launched on Monday.Before this, the G-Secs public sale -- scheduled for February 11 -- was additionally cancelled following a pointy rise in bond yields after the announcement of a file borrowing program earlier this month.The authorities plans to borrow a file Rs 11.6 lakh crore from the market in 2023-23 to fulfill its expenditure requirement to prop up the economic system hit by the Covid-19 pandemic.This is sort of Rs 2 lakh crore increased than the present yr's Budget estimate of Rs 9.7 lakh crore.Even the gross borrowing for the subsequent monetary yr would be the highest-ever at Rs 14.95 lakh crore as towards Rs 12.05 lakh crore Budget Estimate (BE) for 2021-22.However, the gross borrowing has been revised downwards by practically Rs 2 lakh crore to Rs 10.46 lakh crore for the present monetary yr helped by enchancment in revenues.Gross borrowing contains reimbursement of previous loans. The authorities raises cash from the market to fund its fiscal deficit by means of dated securities and treasury payments.