Government's Strategic Borrowing Plan: What You Need to Know About India's Fiscal Moves

India's Fiscal Strategy for the Upcoming Year

New Delhi: The Indian government has announced plans to borrow ₹7.86 lakh crore in the latter half of the current fiscal year, marking a significant reduction of ₹1,20,494 crore from the total borrowing initially projected for this financial year.

According to a statement from the finance ministry, the anticipated market borrowing for the fiscal year 2026-27 is set at ₹15,99,506 crore through dated securities, which is lower than the budget estimate of ₹17,20,000 crore for the current year.

In collaboration with the Reserve Bank of India (RBI), the government has confirmed its decision to secure ₹7,86,000 crore in the second half (H2) of FY 2026-27, which includes the issuance of Sovereign Green Bonds (SGrBs) amounting to ₹15,000 crore.

For the first half of the fiscal year, which concludes this month, the government aims to raise ₹8,13,506 crore from bond sales, slightly below the target of ₹8.2 lakh crore, to address the revenue shortfall.

The statement also indicated that the gross market borrowing of ₹7,86,000 crore for the second half of FY27 will be executed through 23 weekly auctions.

This borrowing will encompass securities with various maturities, including 3 years, 5 years, 7 years, 10 years, 15 years, 30 years, 40 years, and 50 years.

The distribution of borrowing (including SGrBs) across different maturities will be as follows: 3-year (6.9%), 5-year (12.1%), 7-year (9.1%), 10-year (26.3%), 15-year (17.6%), 30-year (9.2%), 40-year (8.9%), and 50-year (9.9%).