The Indian government is set to borrow a hefty Rs 6.77 lakh crore in the second half of the fiscal year 2025-26, from October to March. This borrowing plan, shared by the Finance Ministry on Friday, focuses on dated securities and includes Rs 10,000 crore raised through Sovereign Green Bonds to support eco-friendly projects.
Officials aim to wrap up this gross market borrowing through 22 weekly auctions by March 6, 2026. They’ll spread the funds across various bond maturities to keep things balanced: 3-year securities get 6.6%, 5-year take 13.3%, 7-year 8.1%, 10-year a big 28.4%, 15-year 14.2%, 30-year 9.2%, 40-year 11.1%, and 50-year another 9.2%.
To manage repayments smoothly, the government will keep using strategies like switching or buying back older securities. They also hold the option to grab an extra Rs 2,000 crore in subscriptions for each auction if demand is high—a flexibility called the greenshoe option.
On the shorter-term side, expect Rs 19,000 crore in Treasury Bills during the third quarter of FY 2025-26. This covers 13 weeks, with Rs 7,000 crore in 91-day bills, Rs 6,000 crore in 182-day ones, and another Rs 6,000 crore in 364-day bills.
The Reserve Bank of India (RBI) is stepping in too, setting the Ways and Means Advances limit at Rs 50,000 crore for this period. This helps cover any short-term cash gaps between government inflows and outflows.
For those new to this, dated government securities—often called G-secs—are basically long-term bonds the government issues to fund its spending and debts. They come with a fixed interest rate paid twice a year and get fully repaid at maturity. Take the 7.17% GS 2028, for example: it pays 7.17% interest semi-annually and wraps up in January 2028.
The government worked with the RBI to finalize this borrowing calendar. The goal? Roll it out steadily to avoid squeezing cash from businesses, which could slow economic growth. Too much borrowing at once might also fuel inflation or widen the fiscal deficit, so this measured approach keeps India’s economy on track.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
