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India Finalises ₹8.2 Lakh Crore H1 FY27 Borrowing, Includes Green Bonds

The Indian government has finalised its borrowing plan for the first half of the 2026-27 financial year, amounting to ₹8.20 lakh crore. This sum, raised through dated securities, represents 51% of the revised gross market borrowing of ₹16.09 lakh crore for the full year. The plan includes raising ₹15,000 crore through Sovereign Green Bonds and will be executed via 26 weekly auctions across various maturities. Additionally, the Reserve Bank of India has set the Ways and Means Advances limit at ₹2.50 lakh crore to manage temporary cash mismatches.

Key Points: India's ₹8.2L Cr H1 FY27 Borrowing Plan with Green Bonds

  • ₹8.2L Cr H1 borrowing
  • Includes ₹15,000 Cr green bonds
  • 26 weekly auctions planned
  • WMA limit set at ₹2.5L Cr
2 min read

Govt finalises Rs 8.20 lakh crore borrowing plan for H1 FY27, includes Rs 15,000 crore green bonds

Govt revises FY27 gross borrowing to ₹16.09L Cr, plans ₹8.2L Cr in H1 via 26 auctions, including ₹15,000 Cr in Sovereign Green Bonds.

"the gross borrowing has been revised down to Rs 16.09 lakh crore - Finance Ministry"

New Delhi, March 28

The Government of India, in consultation with the Reserve Bank of India, has finalised its borrowing programme for the first half of the financial year 2026-27.

According to the official statement of the finance ministry, the gross market borrowing for FY27 was budgeted at Rs 17.20 lakh crore. However, following the conduct of switching operations in government securities (G-Secs) after the Budget presentation, the gross borrowing has been revised down to Rs 16.09 lakh crore.

Out of the revised borrowing, Rs 8.20 lakh crore, accounting for 51 per cent, is planned to be raised in H1 through issuance of dated securities. This includes Rs 15,000 crore through Sovereign Green Bonds (SGrBs).

The government will complete the Rs 8.20 lakh crore borrowing through 26 weekly auctions. The borrowing will be spread across multiple maturities, including 3, 5, 7, 10, 15, 30, 40 and 50-year securities.

The maturity-wise share of borrowing (including SGrBs) has been indicated as follows: 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 added that the government will undertake switching and buyback operations of securities to smoothen the redemption profile.

Further, the government will retain the flexibility to exercise the greenshoe option, allowing it to accept additional subscriptions of up to Rs 2,000 crore for each security during auctions.

In addition, weekly borrowing through Treasury Bills (T-Bills) during the first quarter (Q1) of FY27 is estimated at Rs 24,000 crore for a period of 12 weeks. This includes Rs 12,000 crore through 91-day T-Bills, Rs 6,000 crore through 182-day T-Bills, and Rs 6,000 crore through 364-day T-Bills.

To address temporary mismatches in government accounts, the RBI has set the Ways and Means Advances (WMA) limit for H1 FY27 at Rs 2.50 lakh crore.

- ANI

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Reader Comments

R
Rohit P
Rs 8.20 lakh crore is a huge amount. While borrowing is necessary for growth, I hope the government keeps a tight check on fiscal deficit. The common man is already dealing with high inflation.
A
Arjun K
The focus on long-term securities (30, 40, 50-year) is interesting. It shows confidence in the long-term economic stability. The green bond component, though small, is a welcome move for our environmental commitments.
S
Sarah B
As an investor, the detailed maturity breakdown is very helpful for planning. The weekly auction schedule provides good liquidity. Hope the green bonds attract dedicated funding for renewable energy projects.
V
Vikram M
Respectfully, while the plan seems robust on paper, the actual on-ground impact matters more. We've seen big numbers before. The key is whether this borrowing translates into tangible job creation and better roads/hospitals for the aam aadmi.
K
Karthik V
The revision down from the budgeted amount is a prudent fiscal step. The WMA limit of Rs 2.5 lakh crore also seems adequate to manage cash flows. Overall, a balanced approach by the Finance Ministry and RBI.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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