India to Borrow ₹7.86 Lakh Crore in H2 FY 2026-27
The Government of India has announced its plans to borrow ₹7,86,000 crore in the second half of the fiscal year 2026-27, according to a recent statement made in collaboration with the Reserve Bank of India (RBI). This borrowing plan includes the issuance of ₹15,000 crore in Sovereign Green Bonds (SGrBs), reflecting the government’s commitment to sustainable financing.
For the entire fiscal year, the government is expected to undertake market borrowings totalling ₹15,99,506 crore through dated securities. This figure is slightly lower than the initial budget estimate of ₹17,20,000 crore for FY 2026-27, indicating a strategic adjustment in response to financial conditions.
Details of the Borrowing Plan
The gross market borrowing in the second half is set to be executed through 23 weekly auctions. Each auction will cover securities with various tenors—including 3, 5, 7, 10, 15, 30, 40, and 50 years. The distribution of the borrowing will be as follows: 6.9% for 3-year securities, 12.1% for 5-year securities, 9.1% for 7-year securities, 26.3% for 10-year securities, 17.6% for 15-year securities, 9.2% for 30-year securities, 8.9% for 40-year securities, and 9.9% for 50-year securities.
To optimize the redemption profile, the government plans to continue repurchasing and switching securities as necessary. Additionally, it retains the option to use a greenshoe provision, allowing up to ₹2,000 crore in extra subscriptions for each of the securities listed in auction notifications.
Weekly Treasury Bill Auctions
In the third quarter of FY 2026-27, the government is also expected to borrow ₹23,000 crore per week over 13 auction weeks through the issuance of Treasury Bills (T-Bills). The breakdown for T-Bills will include ₹8,000 crore in 91-day bills, ₹8,000 crore in 182-day bills, and ₹7,000 crore in 364-day bills, facilitating effective cash management.
To handle any short-term discrepancies in government accounts, the RBI has set the Ways and Means Advances (WMA) limit for the second half of FY 2026-27 at ₹50,000 crore. This measure aims to ensure liquidity and financial stability.
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