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Key Points

The RBI has indicated states and UTs will borrow Rs 2.86 lakh crore in Q2 FY2025. Maharashtra tops the list with Rs 6,000 crore borrowing on July 1. The government plans Rs 15.4 lakh crore total borrowing for FY2025-26 to fund capital expenditure. Fiscal deficit is targeted at 4.4% of GDP for the current financial year.

Key Points: States to borrow Rs 2.86 lakh crore in July-September quarter

  • Maharashtra leads with Rs 6,000 crore borrowing on July 1
  • RBI coordinates Rs 8 lakh crore H1 borrowing via 26 auctions
  • Fiscal deficit target set at 4.4% of GDP for FY2025-26
  • Borrowings spread across 3-50 year maturity securities
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States/UTs to borrow Rs 2.86 lakh crore in Jul-Sep quarter: RBI

RBI reveals states and UTs plan Rs 2.86 lakh crore market borrowing in Q2 FY2025, with Maharashtra leading initial auctions.

"The government aims to use its market borrowings for capital expenditure as it is largely non-inflationary. - Finance Ministry"

New Delhi, June 30

States and Union Territories combined will raise about Rs 2.86 lakh crore from markets in the quarter July-September 2025, the Reserve Bank of India (RBI) has indicated.

The expected market borrowing plans have been decided upon by the RBI after consulting with the State Governments/Union Territories.

On July 1, Rs 18,100 crore is proposed to be borrowed - Andhra Pradesh (Rs 2,000 crore), Assam (Rs 900 crore), Gujarat (Rs 1,000 crore), Himachal Pradesh (Rs 1,200 crore), Kerala (Rs 2,000 crore), Maharashtra (Rs 6,000 crore), Rajasthan (Rs 500 crore), Tamil Nadu (Rs 2,000 crore), Telangana (Rs 1,500 crore), and West Bengal (Rs 1,000 crore).

Out of the gross market borrowing of Rs 14.82 lakh crore budgeted for 2025-26, Rs 8.00 lakh crore (54.0 per cent) is planned to be borrowed in the first half of the fiscal, through issuance of dated securities.

The gross market borrowing of Rs 8.00 lakh crore shall be completed through 26 weekly auctions, a Ministry of Finance statement had indicated way back in March. 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 (5.3%), 5-year (11.3%), 7-year (8.2%), 10-year (26.2%), 15-year (14.0%), 30-year (10.5%), 40-year (14.0%) and 50-year (10.5%), the March finance ministry statement noted.

Presenting the Union Budget, Finance Minister Nirmala Sitharaman had pegged the 2025-26 fiscal deficit target at 4.4 per cent of GDP for the financial year 2025-26, versus the revised 4.8 per cent in 2024-25. The government intends to bring the fiscal deficit below 4.5 per cent of GDP by the end of the financial year 2025-26.

The difference between total revenue and total expenditure of the government is termed the fiscal deficit. It is an indication of the total borrowings that the government may need.

As announced in the Union budget on February 1, the government plans to borrow Rs 15.4 lakh crore from the market during FY 2025-26.

The government aims to use its market borrowings for capital expenditure as it is largely non-inflationary.

- ANI

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Reader Comments

S
Shreya B
Maharashtra borrowing ₹6000cr while Rajasthan only ₹500cr? Interesting to see how different states are planning their finances. Would love to see a breakdown of how this money will be used!
A
Arjun K
The 50-year securities option is smart planning! Locking in rates for long-term infrastructure projects makes sense. But transparency in utilization is key - hope we get regular updates on project progress.
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Priya S
As someone from Kerala, I'm glad to see ₹2000cr allocation but worried about our state's existing debt burden. Hope this money is used productively for job creation and not just political projects 🙏
M
Michael C
The fiscal deficit reduction target seems ambitious given these borrowing plans. India's growth story is impressive but debt management will be crucial to maintain macroeconomic stability.
K
Kavya N
Good to see capital expenditure focus! Unlike wasteful subsidies, infrastructure spending creates lasting assets. But implementation speed matters - hope we don't see funds stuck in bureaucratic delays.

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