The central government is planning to raise upto 3.7 trillion rupees during the first quarter of the upcoming financial year through bond sales.

The plans are as per market expectations for the April-September quarter. The bond sale in the quarter will amount to about 65 per cent of the government’s total target borrowing of 5.7 trillion rupees for 2012/13.

Analysts were expecting the government to plan to raise about 3.6 trillion to 3.8 trillion rupees during the period. Dealers in the bond markets say that the announcement from the government would result in an increase in bond yields due to concerns of large supplies.

Meanwhile, the Reserve Bank of India has released its borrowing calendar for the period have pointed out that the government will borrow between 150 billion rupees and 180 billion rupees every week.

Economic Affairs Secretary R. Gopalan has said that the government will aim to stay within plans limits and not overshoot the borrowing limit. “We have planned this very carefully. We had problems with income tax refunds last year, but this year we have taken care of that problem," Gopalan said.

He also said that the new borrowings for the period would be about 2.85 trillion rupees after accounting for redemptions. He was speaking in the aftermath of a meeting with the officials of the central bank in the country’s capital.