Govt to borrow Rs 8 lakh crore in first half of FY26

The Ministry of Finance on Thursday announced its borrowing plan for the first half (H1) of FY 2025-26. As part of this, the government will raise Rs 8 lakh crore, which is 54% of the total market borrowing of Rs 14.82 lakh crore for the year.

A portion of this borrowing, amounting to Rs 10,000 crore, will be raised through Sovereign Green Bonds (SGrBs) to fund environmentally sustainable projects.

The borrowing will be conducted through 26 weekly auctions, with securities maturing between 3 and 50 years.


"The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40 and 50 year securities. The share of borrowing (including SGrBs) under different maturities will be: 3-year (5.3%), 5-year (11.3%), 7-year (8.2%), 10-year (26.2%), 15-year (14.0%), 30-year (10.5%), 40-year (14.0%) and 50-year (10.5%)," said the government in a notification.

To manage debt repayment efficiently, the government will buy back or switch securities to smoothen the redemption profile. It has also reserved the right to retain an additional Rs 2,000 crore per security in case of strong demand.

In addition to long-term borrowing, the government will also issue Treasury Bills (T-Bills) worth Rs 19,000 crore weekly in Q1 of FY26. This will include Rs 9,000 crore in 91-day T-Bills, ₹5,000 crore in 182-day T-Bills, and Rs 5,000 crore in 364-day T-Bills.

To address temporary mismatches in cash flow, the RBI has set the Ways and Means Advances (WMA) limit at Rs 1.50 lakh crore for the first half of the financial year.