Govt to borrow ₹7.86 lakh crore in second half of FY 2026-2; less than budget estimate

Full-year market borrowing estimated at ₹15.99 lakh crore against Budget Estimate of ₹17.20 lakh crore

NEW DELHI, SEPTEMBER 25: The Government of India has decided to borrow ₹7.86 lakh crore through dated securities during the second half of financial year 2026-27, in consultation with the Reserve Bank of India (RBI).

The borrowing programme for the second half includes issuance of ₹15,000 crore through Sovereign Green Bonds (SGrBs).

The government is expected to undertake total market borrowing of ₹15,99,506 crore through dated securities during FY 2026-27, compared with the Budget Estimate of ₹17,20,000 crore.

23 weekly auctions planned

The gross market borrowing of ₹7.86 lakh crore during the second half will be conducted through 23 weekly auctions.

The borrowing will be spread across securities with maturities of 3, 5, 7, 10, 15, 30, 40 and 50 years.

The maturity-wise share of the borrowing, including Sovereign Green Bonds, will be:

• 3-year: 6.9%

• 5-year: 12.1%

• 7-year: 9.1%

• 10-year: 26.3%

• 15-year: 17.6%

• 30-year: 9.2%

• 40-year: 8.9%

• 50-year: 9.9%

The government will continue to undertake switching and buyback of securities to smoothen the redemption profile.

It will also retain the option of exercising a greenshoe facility to retain additional subscriptions of up to ₹2,000 crore against each of the securities specified in auction notifications.

₹23,000 crore weekly T-Bill borrowing in Q3

During the third quarter of FY 2026-27, the government is expected to borrow ₹23,000 crore per week through Treasury Bills (T-Bills) across 13 auction weeks.

The planned weekly borrowing will comprise ₹8,000 crore through 91-day T-Bills, ₹8,000 crore through 182-day T-Bills and ₹7,000 crore through 364-day T-Bills.

WMA limit fixed at ₹50,000 crore

To meet temporary mismatches in government accounts, the RBI has fixed the Ways and Means Advances (WMA) limit for the second half of FY 2026-27 at ₹50,000 crore.