The government, in coordination with the Reserve Bank of India (RBI), has announced plans to borrow Rs 8.20 lakh crore during the initial half of the financial year 2026-27. This borrowing constitutes 51% of the total estimated amount for the year, which was initially set at Rs 17.20 lakh crore in the Budget Estimate 2026-27. The borrowing will be facilitated through the issuance of dated securities, including Rs 15,000 crore of Sovereign Green Bonds (SGrBs), as per the Finance Ministry’s statement.
The Gross Market Borrowings of Rs 8.20 lakh crore will be conducted through 26 weekly auctions and will encompass various maturity periods ranging from 3 to 50 years. The distribution of borrowing under different maturities, including SGrBs, is outlined as follows: 3-year (8.1%), 5-year (15.4%), 7-year (8.1%), 10-year (29.0%), 15-year (14.5%), 30-year (7.3%), 40-year (8.0%), and 50-year (9.6%), according to the statement.
Additionally, the government plans to conduct a buyback of securities to ensure a smooth redemption profile. It retains the option to exercise the greenshoe option to secure an additional subscription of up to Rs 2,000 crore against each of the securities specified in the auction notifications. Furthermore, weekly borrowing through the issuance of Treasury Bills (T-Bills) in the first quarter of FY 2026-27 is anticipated to be Rs 24,000 crore for 12 weeks, with allocations under 91-day, 182-day, and 364-day T-Bills, as per the official statement.
To address temporary imbalances in government accounts, the RBI has set the Ways and Means Advances (WMA) limit for the first half of FY 2026-27 at Rs 2.50 lakh crore, as per the statement.
