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Centre to Borrow Rs 7.86 Lakh Crore in H2FY27; Full-Year Borrowing Below Budget Estimate
M
Moneycontrol•25-09-2026, 18:04
Centre to Borrow Rs 7.86 Lakh Crore in H2FY27; Full-Year Borrowing Below Budget Estimate
- •The central government plans to borrow Rs 7.86 lakh crore in the second half of FY27 through dated securities, including Rs 15,000 crore via Sovereign Green Bonds.
- •The full-year market borrowing of nearly Rs 16 lakh crore is Rs 1.20 lakh crore below the FY27 Budget Estimates, aligning with fiscal consolidation goals.
- •The gross market borrowing in H2FY27 will be conducted through 23 weekly auctions, with the 10-year segment accounting for the largest share at 26.3 percent.
- •The government will continue switching and buyback operations to smoothen the redemption profile and has a greenshoe option for additional subscriptions up to Rs 2,000 crore.
- •The central government expects to borrow Rs 23,000 crore weekly through Treasury Bills in Q3FY27, and the RBI has set the Ways and Means Advances limit at Rs 50,000 crore for H2FY27.
Key Questions Answered
The central government will borrow Rs 7.86 lakh crore during the second half (H2) of FY27 through dated securities, which includes Rs 15,000 crore raised via Sovereign Green Bonds.
The full-year market borrowing plan of nearly Rs 16 lakh crore is about Rs 1.20 lakh crore below the Rs 17.20 lakh crore originally projected in the FY27 Budget Estimates.
The fiscal deficit for FY27 is targeted at 4.3 percent of GDP, aligning with the government's broader fiscal consolidation path and debt consolidation strategy.
