The Central Government has something called a fiscal deficit. This has to be funded. The market borrowing of the Central Government is met by issuing dated securities (called G Sec) and 364 day Treasury Bills. This is normally done by issue of a slew of G Secs, T bills, by holding auctions.
Money is raised by auctions, floating of fixed coupon loans, private placements, as well as other open market operations…etc.,
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