The Centre, in consultation with the Reserve Bank of India (RBI), has finalised its borrowing programme for the first half (H1) of FY 2026–27. Under the plan, the government will mobilise ₹8.20 lakh crore through the issuance of dated securities.
Revised Borrowing Estimates Post Budget
The gross market borrowing for FY 2026–27 was initially estimated at ₹17.20 lakh crore in the Budget Estimates (BE). Following the Budget presentation, switches of government securities (G-Secs) were undertaken, reducing the gross borrowing requirement to ₹16.09 lakh crore. Of this revised amount, ₹8.20 lakh crore (51%) is scheduled to be raised in H1 through dated securities, including ₹15,000 crore through Sovereign Green Bonds (SGrBs).
Borrowing Strategy and Maturity Mix
The ₹8.20 lakh crore borrowing will be completed through 26 weekly auctions. The issuance will be spread across a wide maturity spectrum, including 3-year, 5-year, 7-year, 10-year, 15-year, 30-year, 40-year, and 50-year securities. The maturity-wise distribution (including SGrBs) has been planned at 8.1% for 3-year securities, 15.4% for 5-year securities, 8.1% for 7-year securities, 29.0% for 10-year securities, 14.5% for 15-year securities, 7.3% for 30-year securities, 8.0% for 40-year securities, and 9.6% for 50-year securities.
Liquidity Management and Market Operations
The government will undertake switching and buyback operations to smoothen the redemption profile. It will also retain the flexibility to exercise the greenshoe option, allowing an additional subscription of up to ₹2,000 crore for each security specified in the auction notifications.
Treasury Bills Issuance Plan for Q1
Weekly borrowing through Treasury Bills (T-Bills) in the first quarter (Q1) of FY 2026–27 is projected at ₹24,000 crore over a period of 12 weeks. This includes ₹12,000 crore through 91-day T-Bills, ₹6,000 crore through 182-day T-Bills, and ₹6,000 crore through 364-day T-Bills.
WMA Limit Set for Liquidity Support
To address temporary mismatches in government accounts, the RBI has set the Ways and Means Advances (WMA) limit at ₹2.50 lakh crore for the first half of FY 2026–27.