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Key Points

The Indian government has outlined its borrowing strategy for the latter half of the fiscal year. It plans to raise a significant sum through dated securities with varied maturities. A portion of this fundraising is dedicated to green bonds, highlighting a focus on sustainable finance. The plan includes mechanisms to ensure smooth market operations and manage liquidity.

Key Points: India Finalises Rs 6.77 Lakh Crore H2 FY26 Borrowing Plan

  • Borrowing includes ₹10,000 crore via Sovereign Green Bonds for environmental projects
  • Funds raised through 22 weekly auctions spanning eight different maturity tenors
  • Government retains greenshoe option for additional ₹2,000 crore per security
  • RBI sets ₹50,000 crore WMA limit to manage temporary cash flow mismatches
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Govt finalises borrowing plan of Rs 6.77 lakh crore for H2 FY 2025-26

Govt and RBI set ₹6.77 lakh crore borrowing for H2 FY 2025-26, including green bonds, through 22 weekly auctions to manage fiscal needs.

"Weekly borrowing through issuance of Treasury Bills in the third quarter (Q3) of FY 2025-26 is expected to be ₹19,000 crore - Ministry of Finance"

New Delhi, September 26

The Government of India, in consultation with the Reserve Bank of India (RBI), has finalised its borrowing programme for the second half of the fiscal year 2025-26, targeting a total of Rs 6.77 lakh crore through dated securities. This also includes ₹10,000 crore through issuance of Sovereign Green Bonds (SGrBs), according to the Ministry of Finance press release.

The Gross Market Borrowing of ₹6.77 lakh crore shall 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, a release said.

The share of borrowing (including SGrBs) under different maturities will be: 3-year (6.6%), 5-year (13.3%), 7-year (8.1%), 10-year (28.4%), 15-year (14.2%), 30-year (9.2%), 40-year (11.1%) and 50-year (9.2%), added the release.

The government will continue to carry out the switching/buyback of securities to smooth the redemption profile, and it will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to ₹2,000 crore against each of the securities indicated in the auction notifications, the release added.

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

To take care of temporary mismatches in Government payments and receipts, , the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H2 of FY 2025-26 at ₹50,000 crore.

- ANI

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Reader Comments

R
Rohit P
Good to see ₹10,000 crore allocated for Green Bonds. Climate action is crucial for our future. Hope this funding actually reaches renewable energy projects and not just stays on paper. 🌱
A
Aditya G
The spread across different maturities (3 to 50 years) shows smart debt management. This should help stabilize the yield curve. RBI and FinMin seem to have a balanced approach. 👍
S
Sarah B
As an investor, I'm curious about how this will affect bond yields. The 10-year securities having the largest share (28.4%) suggests the government expects stable long-term rates. Might be good for fixed income investors.
K
Karthik V
₹6.77 lakh crore is a huge amount! While borrowing is necessary for development, I hope there's proper transparency in how this money is utilized. Taxpayers deserve to know where every rupee goes.
M
Michael C
The WMA limit of ₹50,000 crore seems reasonable for managing temporary cash flow issues. Shows the RBI is prepared for contingencies. Overall, the plan appears well-structured.
N
Neha E
I appreciate the detailed breakdown of the borrowing plan. The weekly auction schedule till March 2026 gives clarity to markets. Hope this borrowing fuels job creation and economic growth! 🙏

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