The Government, in consultation with the Reserve Bank of India (RBI), has finalised a market borrowing plan of ₹8.20 lakh crore for the first half (H1) of FY 2026-27, to be raised through 26 weekly auctions, according to the Ministry of Finance.
The borrowing forms part of the revised gross market borrowing estimate of ₹16.09 lakh crore for FY 2026-27, after switches of government securities reduced the earlier Budget estimate of ₹17.20 lakh crore.
The H1 borrowing accounts for 51% of the total annual borrowing programme and will be raised through issuance of dated government securities across multiple maturities.
The government will also issue ₹15,000 crore of Sovereign Green Bonds as part of the borrowing programme, continuing its push towards financing environmentally sustainable projects.
“Gross Market Borrowings in BE 2026-27 was ₹17.20 lakh crore. Since Budget presentation, switches of G-Sec were conducted, reducing Gross Market borrowing to ₹16.09 lakh crore. Of ₹16.09 lakh crore, ₹8.20 lakh crore (51.0%) is planned to be borrowed in H1 through issuance of dated securities, including ₹15,000 crore of Sovereign Green Bonds (SGrBs),” the Ministry of Finance said in a statement on Friday, 27 March.
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These include securities with tenors of 3, 5, 7, 10, 15, 30, 40 and 50 years, with the highest share allocated to 10-year securities at 29.0 per cent.
To manage redemption pressures, the government will undertake switching and buyback operations of securities to smoothen the maturity profile.
Additionally, the government will retain the option to exercise a greenshoe mechanism to retain an additional subscription of up to ₹2,000 crore against each of the securities indicated in the auction notifications.
On short-term borrowing, the government plans to raise ₹24,000 crore weekly through Treasury Bills during the first quarter, including ₹12,000 crore via 91-day T-Bills, ₹6,000 crore through 182-day T-Bills and ₹6,000 crore via 364-day T-Bills.
The Reserve Bank of India has set the Ways and Means Advances limit at ₹2.50 lakh crore for the first half of FY 2026-27 to address temporary mismatches in government accounts.
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