RBI’s Stake May Increase By 2 Lakh Crores In Govt Securities
RBI’s stake may increase by two lakh crores in government securities, the government in preparation for taking record debt.
In view of the government’s plan to take record debt in the next financial year, the holding of Reserve Bank (RBI) in government securities may increase by about Rs 2 lakh crore.
The central bank already holds a 17 percent stake in outstanding government bonds worth Rs 80.8 lakh crore.
A report by SBI Research said that due to the large lending program, RBI will have to find buyers for bonds of at least Rs 2 lakh crore as banks usually opt for short-term loans of less than 10 years.
RBI’s stake may increase by two lakh crores: In the budget 2022-23, the government is expected to take a gross debt of 14.5 lakh crores.
If the loan taken by the states is included, then it becomes Rs 23.3 lakh crore. While the net debt is estimated to be Rs 17.8 lakh crore.
The central bank’s share is second only to financial institutions in the government’s outstanding bonds of Rs 80.8 lakh crore. Financial institutions are the largest shareholders in outstanding bonds.
According to the report, the government securities maturing by 2061 stood at Rs 80.8 lakh crore. Of these, 37.8 percent of securities were with banks, 24.2 percent with insurance companies.
In all, they held 62 percent of the securities. Whereas, the central bank held 17 percent of the securities.
RBI Estimates- Retail inflation to be 4.5% in 2022-23
RBI had recently said that the consumer price index-based inflation, starting April 1, 2022, will increase in the next financial year starting April 1, 2022.
The measures taken to improve crop production, improve supply conditions and the monsoon is likely to be good. It is likely to come down to 4.5 percent.
This inflation forecast is very close to the RBI’s satisfactory level. However, there is a risk of a sharp rise in the price of crude oil globally.
The Reserve Bank has retained the inflation forecast for the current fiscal at 5.3 percent.
