5 hrs ago
India Sets ₹7.86 Lakh Crore H2 FY27 Borrowing Plan
The Government of India plans to borrow money during the second half of FY27.
It will raise ₹7.86 lakh crore by selling government securities.
This amount includes ₹15,000 crore from green bonds.
The borrowing will happen through 23 weekly auctions.
The government will sell bonds that last from three years to 50 years.
Ten-year bonds will make up the biggest share.
The government also plans to borrow ₹23,000 crore each week through short-term Treasury Bills during the third quarter.
Overall, it plans to borrow less during FY27 than it originally estimated, which officials described as fiscal prudence.
The Government of India will borrow ₹7.86 lakh crore through securities in H2 FY27, including ₹15,000 crore via Sovereign Green Bonds.
Total FY27 market borrowing is projected at ₹15,99,506 crore, ₹1,20,494 crore below the Budget Estimate of ₹17,20,000 crore.
The H2 borrowing will be conducted through 23 weekly auctions involving securities with maturities from three to 50 years.
Ten-year securities will account for the largest share of H2 borrowing at 26.3%, while the government will continue switching and buying back securities.
In Q3 FY27, Treasury Bill borrowing is expected to total ₹23,000 crore per week across 13 auction weeks, and the H2 Ways and Means Advances limit is ₹50,000 crore.
- Who
- The Government of India, in consultation with the Reserve Bank of India.
- What
- A plan to borrow ₹7.86 lakh crore in H2 FY27, including ₹15,000 crore through Sovereign Green Bonds.
- Where
- Through Indian financial markets, government securities and weekly auctions.
- When
- The plan covers the second half of FY 2026-27; Treasury Bill borrowing details apply to Q3 FY27.
- Why
- To finance the fiscal deficit and manage government borrowing and debt redemptions.
Key facts
- H2 FY27 borrowing
- ₹7.86 lakh crore
- FY27 market borrowing
- ₹15,99,506 crore through dated securities
- Reduction from Budget Estimate
- ₹1,20,494 crore below the ₹17,20,000 crore estimate
- Sovereign Green Bonds
- ₹15,000 crore
- H2 auction schedule
- 23 weekly auctions
- Largest maturity share
- 10-year securities at 26.3%
- Q3 Treasury Bills
- ₹23,000 crore per week across 13 auction weeks
- H2 Ways and Means Advances limit
- ₹50,000 crore
Quotes
Nirmala Sitharaman
India’s finance minister, presenting the 2026-27 Union Budget
“To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs 11.7 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 17.2 lakh crore.”
financialexpress.com
“The Government of India, in consultation with the Reserve Bank of India (RBI), has decided to borrow Rs 7,86,000 crore in the second half (H2) of FY 2026-27. This includes Sovereign Green Bonds (SGrBs) issuance of Rs 15,000 crore.”
financialexpress.com
Sources
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