Government Plans Rs 6.77 Lakh Crore Borrowing In H2 2025-26 Including Green Bonds

New Delhi [India]: The Government of India, in consultation with the Reserve Bank of India (RBI), has finalised its borrowing programme for the second half of the fiscal year 2025-26, targeting a total of Rs 6.77 lakh crore through dated securities. This also includes ₹10,000 crore through issuance of Sovereign Green Bonds (SGrBs), according to the Ministry of Finance press release.

The Gross Market Borrowing of ₹6.77 lakh crore shall be completed through 22 weekly auctions till March 6, 2026. The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40, and 50-year securities, a release said.

The share of borrowing (including SGrBs) under different maturities will be: 3-year (6.6%), 5-year (13.3%), 7-year (8.1%), 10-year (28.4%), 15-year (14.2%), 30-year (9.2%), 40-year (11.1%) and 50-year (9.2%), added the release.

The government will continue to carry out the switching/buyback of securities to smooth the redemption profile, and it will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to ₹2,000 crore against each of the securities indicated in the auction notifications, the release added. 

"Weekly borrowing through issuance of Treasury Bills in the third quarter (Q3) of FY 2025-26 is expected to be ₹19,000 crore for 13 weeks with issuance of ₹7,000 crore under 91 DTBs, ₹6,000 crore under 182 DTBs and ₹6,000 crore under 364 DTBs, respectively," added the release.

To take care of temporary mismatches in Government payments and receipts, , the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H2 of FY 2025-26 at ₹50,000 crore.

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