The Government of India plans to borrow ₹7,86,000 crore through dated securities during the second half (H2) of FY2026-27, including ₹15,000 crore through Sovereign Green Bonds (SGrBs), as it moves to finance its fiscal requirements while keeping the overall market borrowing below the Budget Estimate.
The borrowing programme has been finalised in consultation with the Reserve Bank of India (RBI), the government said on September 25.
With the H2 programme, the government’s total market borrowing for FY2026-27 is expected to be ₹15,99,506 crore, compared with the Budget Estimate of ₹17,20,000 crore.
23 weekly auctions planned
The ₹7.86 lakh crore H2 borrowing through dated securities will be completed through 23 weekly auctions. The government will issue securities across eight maturities — 3, 5, 7, 10, 15, 30, 40 and 50 years.
The 10-year segment will account for the largest share of the H2 borrowing at 26.3%, followed by 15-year securities at 17.6% and 5-year securities at 12.1%.
The maturity-wise distribution, including Sovereign Green Bonds, is:
- 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%
- 50-year: 9.9%
The government said it will continue to undertake switching and buyback of securities to smoothen the redemption profile.
It will also retain the option to exercise a greenshoe facility, allowing an additional subscription of up to ₹2,000 crore against each security indicated in auction notifications.
T-Bill borrowing at ₹23,000 crore a week
In addition to dated securities, the government expects to borrow ₹23,000 crore per week through Treasury Bills (T-Bills) during Q3 FY2026-27, covering 13 auction weeks.
The weekly T-Bill borrowing will comprise ₹8,000 crore through 91-day T-Bills, ₹8,000 crore through 182-day T-Bills and ₹7,000 crore through 364-day T-Bills.
This translates into an expected ₹2,99,000 crore of T-Bill issuance during the quarter, based on the planned weekly schedule.
WMA limit fixed at ₹50,000 crore
To manage any temporary mismatch between government receipts and expenditure, the RBI has fixed the Ways and Means Advances (WMA) limit at ₹50,000 crore for H2 FY2026-27.
The WMA facility allows the government to meet temporary cash-flow mismatches.
The H2 borrowing programme comes against the backdrop of the government’s full-year market borrowing requirement being projected at ₹15.995 lakh crore, which is ₹1.205 lakh crore lower than the ₹17.20 lakh crore provided for in the Budget Estimates.