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India to Borrow Rs 8.20 Lakh Crore in H1 FY27, Plans Green Bonds

The Indian government, in consultation with the RBI, has announced its borrowing calendar for the first half of the next financial year. It plans to raise Rs 8.20 lakh crore, which constitutes 51% of its revised annual gross market borrowing. The borrowing will be conducted through 26 weekly auctions of dated securities across various maturities, including sovereign green bonds. Additionally, the RBI has set a Ways and Means Advances limit of Rs 2.50 lakh crore to manage temporary cash flow mismatches.

Key Points: Govt Borrows Rs 8.20 Lakh Crore in H1 FY 2026-27

  • Rs 8.20 lakh crore H1 borrowing
  • Includes Rs 15,000 crore Green Bonds
  • 26 weekly auctions planned
  • WMA limit set at Rs 2.50 lakh crore
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Govt to borrow Rs 8.20 lakh crore during first half of FY 2026-27

The Indian government announces a borrowing plan of Rs 8.20 lakh crore for the first half of FY 2026-27, including green bonds and treasury bills.

"Rs 8.20 lakh crore, which works out to 51 per cent of the total amount, is planned to be borrowed in the first half - Finance Ministry"

New Delhi, March 27

The government announced on Friday that, in consultation with the Reserve Bank of India, it has decided to borrow Rs 8.20 lakh crore during the first half of the financial year 2026-27.

Gross market borrowing in the Budget Estimate (BE) 2026-27 was fixed at Rs 17.20 lakh crore.

Since the presentation of the Budget, switches of G-Sec were conducted, reducing gross market borrowing to Rs 16.09 lakh crore. As much as Rs 8.20 lakh crore, which works out to 51 per cent of the total amount, is planned to be borrowed in the first half (April-September) of the financial year 2026-27. The borrowing will be done through issuance of dated securities, including Rs 15,000 crore of Sovereign Green Bonds (SGrBs), the Finance Ministry said in a statement.

The Gross Market Borrowings of Rs 8.20 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50-year securities. The share of borrowing (including SGrBs) under different maturities will be: 3-year (8.1 per cent), 5-year (15.4 per cent), 7-year (8.1 per cent), 10-year (29.0 per cent), 15-year (14.5 per cent), 30-year (7.3 per cent), 40-year (8.0 per cent) and 50-year (9.6 per cent), the statement said.

The government will also carry out a buyback of securities to smooth the redemption profile.

It will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications, the statement added.

Weekly borrowing through issuance of Treasury Bills (T-Bills) in the first quarter (Q1) of FY 2026-27 is expected to be Rs 24,000 crore for 12 weeks with issuance of Rs 12,000 crore under 91-day T-Bills, Rs 6,000 crore under 182-day T-Bills and Rs 6,000 crore under 364- day T-Bills, the statement said.

To take care of temporary mismatches in government accounts, the RBI has fixed the Ways and Means Advances (WMA) limit for H1 of FY 2026-27 at Rs 2.50 lakh crore, the statement added.

- IANS

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Reader Comments

S
Shreya B
Good to see the detailed breakdown and the inclusion of Sovereign Green Bonds. Investing in sustainable projects is the need of the hour. However, the sheer scale of borrowing is concerning. We need more transparency on where exactly this money will be deployed.
A
Aman W
As a small investor, I'm watching the 10-year and 15-year securities closely. This borrowing will influence interest rates on fixed deposits and other savings instruments. Hope the RBI manages this well to keep returns attractive for the middle class.
P
Priyanka N
Borrowing is fine if it's for capital expenditure that builds roads, ports, and digital infrastructure. But we must avoid wasteful spending. The government should also look at increasing tax revenue by widening the base, not just borrowing.
M
Michael C
The weekly auction schedule and the greenshoe option show sophisticated debt management. India's bond market is becoming more mature. International investors will be keenly watching these issuances, especially the longer-dated 40 and 50-year papers.
K
Kavya N
With a general election just concluded, this borrowing plan for the next fiscal was expected. Let's hope the funds are used efficiently and reach the intended projects without delays or corruption. The common man's future is tied to this debt.

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