Govt’s ₹50,000 crore buyback programme receives positive response: DEA Secretary

Ajay Seth, Secretary of the Department of Economic Affairs (DEA), has said the government’s ₹50,000 crore buyback programme has shown an improvement in participation compared to the initial phases of the programme.

This initiative aims to smoothen the repayment of large borrowings made during the COVID-19 pandemic, which necessitated significant increases in government debt.

“During the pandemic year, the borrowings had to be increased significantly. Those were of varied duration—some for five years, others for three years, and even seven years. When more borrowings from that period come in a single year for repayment, it is not a smooth operation. It is for the purpose of smoothing the repayment profile that this buyback was initiated,” Seth told CNBC-TV18.

Seth also expressed confidence in the country’s economic growth, pointing out that the Reserve Bank of India (RBI) and the International Monetary Fund (IMF) have projected growth rates exceeding 7% for the current financial year.

“We see strong growth coming in the third quarter as well as in the fourth quarter. Of course, second-quarter numbers will also be expected by November 30,” he added.

Seth said there will be no additional borrowings beyond what has been outlined in the Budget.

“We realised, compared with the previous year, we had more cash balances at the beginning of the year than we had estimated. Keeping that in mind, we have consciously moderated short-term borrowings to some extent,” he said.

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