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Key Points

The Indian government has unveiled its comprehensive borrowing strategy for the second half of fiscal year 2025-26. Finance Ministry plans to raise Rs 6.77 lakh crore through 22 weekly auctions across various security maturities. The strategy includes issuing Sovereign Green Bonds and maintaining a balanced approach to prevent liquidity constraints. This carefully crafted plan aims to support economic growth while managing fiscal responsibilities.

Key Points: Centre's Rs 6.77 Lakh Crore Borrowing Plan Unveiled for FY 2025-26

  • Centre to borrow through 3-50 year securities with strategic maturity distribution
  • Rs 10,000 crore to be raised via Sovereign Green Bonds
  • RBI sets Ways and Means Advances limit at Rs 50,000 crore
  • Weekly Treasury Bill issuance planned for Q3 at Rs 19,000 crore
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Centre plans to borrow Rs 6.77 lakh crore in 2nd half of 2025-26

Government outlines detailed market borrowing strategy through 22 weekly auctions, including Sovereign Green Bonds and diverse securities maturity profile

"The government plans market borrowings in a phased manner to ensure corporate sector liquidity - Finance Ministry Statement"

New Delhi, Sep 26

The Centre plans to borrow Rs 6.77 lakh crore in the second half of the fiscal year 2025-26 (H2: FY 2025-26) through dated securities, including Rs 10,000 crore through issuance of Sovereign Green Bonds (SGrBs), according to a Finance Ministry statement issued on Friday.

The gross market borrowing of Rs 6.77 lakh crore will be completed through 22 weekly auctions till March 6, 2026. 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 (6.6 per cent), 5-year (13.3 per cent), 7-year (8.1 per cent), 10-year (28.4 per cent), 15-year (14.2 per cent), 30-year (9.2 per cent), 40-year (11.1 per cent) and 50-year (9.2 p er cent), the statement said.

The government will continue to carry out the switching/buyback of securities to smoothen the redemption profile. It will also 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.

Weekly borrowing through issuance of Treasury Bills in the third quarter (Q3) of FY 2025-26 is expected to be Rs 19,000 crore for 13 weeks, with issuance of Rs 7,000 crore under 91 DTBs (dated treasury bills), Rs 6,000 crore under 182 DTBs, and Rs 6,000 crore under 364 DTBs, respectively.

To take care of temporary mismatches in government payments and receipts, the Reserve Bank of India (RBI) has fixed the Ways and Means Advances (WMA) limit for H2 of FY 2025-26 at Rs 50,000 crore, the statement added.

Dated government securities, or G-secs, are long-term bonds issued by a government to finance its debt and meet expenditure commitments. They have a fixed maturity date, a fixed coupon (interest rate) paid semi-annually on the face value, and are redeemed at par value upon maturity. Examples include the 7.17 per cent GS 2028, a Government of India security that pays a 7.17 per cent coupon semi-annually and matures in January 2028

The government has finalised its borrowing programme for the second half (H2) of FY 2025-26 in consultation with the RBI. The Centre plans its market borrowings in a phased manner so that liquidity is not squeezed out for investments in the corporate sector, which tends to hurt economic growth. Excessive borrowing can also lead to inflation and increase the fiscal deficit.

- IANS

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Reader Comments

S
Sarah B
Good to see ₹10,000 crore allocated for Sovereign Green Bonds. Climate-focused investments are crucial for sustainable development. Hope this money is used effectively for renewable energy projects.
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Priya S
The detailed breakdown shows careful planning - spreading across different maturities from 3 to 50 years. This should help manage debt repayment schedules better. But I wish there was more transparency on exactly which projects will be funded.
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Arjun K
As someone who invests in government bonds, this is actually good news. The 10-year securities having the highest share (28.4%) indicates stable long-term planning. Might consider investing in the upcoming auctions. 💰
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Michael C
The WMA limit of ₹50,000 crore seems reasonable for temporary mismatches. RBI is being cautious, which is good for economic stability. Hope this borrowing doesn't crowd out private investment though.
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Neha E
While I appreciate the technical details provided, I'm worried about the fiscal deficit. So much borrowing year after year - when will we see the debt burden reduce? Future generations will have to pay for this. 😟
K
Karthik V
The weekly auction schedule till March 2026 shows systematic planning. Greenshoe option retention up to ₹2000 crore per security gives flexibility. Hope this borrowing actually translates into

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