Centre set to borrow Rs 8.20 lakh crore
The Centre, in consultation with the Reserve Bank of India (RBI), on Friday finalised plans to borrow Rs 8.20 lakh crore through the issuance of dated securities during the first half of FY2026-27, according to a Finance Ministry statement.
Gross market borrowing had been pegged at Rs 17.20 lakh crore in the Budget Estimates for 2026-27. However, following switches of government securities conducted after the Budget presentation, the revised gross borrowing requirement has been reduced to Rs 16.09 lakh crore.
Of this, Rs 8.20 lakh crore (about 51 per cent) will be raised in the first half through 26 weekly auctions, including Rs15,000 crore via Sovereign Green Bonds.
The borrowing programme will be spread across securities with maturities of 3, 5, 7, 10, 15, 30, 40 and 50 years. The government said it would undertake switching and buyback operations to smoothen the redemption profile and retained the option to exercise a greenshoe provision of up to Rs 2,000 crore for each security notified for auction.
Weekly Treasury Bill issuance in the first quarter is expected to total Rs 24,000 crore for 12 weeks, comprising Rs 12,000 crore in 91-day T-Bills and Rs 6,000 crore each under the 182-day and 364-day categories.
To address temporary mismatches in government accounts, the RBI has fixed the Ways and Means Advances (WMA) limit for the first half at Rs 2.5 lakh crore.
