Govt finalises Rs 8.20 lakh crore borrowing plan for H1 FY27, includes Rs 15,000 crore green bonds

NEW DELHI: The Government of India, in consultation with the Reserve Bank of India (RBI), has finalised its borrowing programme for the first half (H1) of the financial year 2026-27.

According to the official statement of the finance ministry, the gross market borrowing for FY27 was budgeted at Rs 17.20 lakh crore. However, following the conduct of switching operations in government securities (G-Secs) after the Budget presentation, the gross borrowing has been revised down to Rs 16.09 lakh crore.

Out of the revised borrowing, Rs 8.20 lakh crore, accounting for 51 per cent, is planned to be raised in H1 through issuance of dated securities. This includes Rs 15,000 crore through Sovereign Green Bonds (SGrBs). The government will complete the Rs 8.20 lakh crore borrowing through 26 weekly auctions. The borrowing will be spread across multiple maturities, including 3, 5, 7, 10, 15, 30, 40 and 50-year securities.

The maturity-wise share of borrowing (including SGrBs) has been indicated as follows: 3-year (8.1 per cent), 5-year (15.4 per cent), 7-year (8.1 per cent), 10-year (29.0 per cent), 15-year (14.5 per cent), 30-year (7.3 per cent), 40-year (8.0 per cent), and 50-year (9.6 per cent). The statement added that the government will undertake switching and buyback operations of securities to smoothen the redemption profile.

Further, the government will retain the flexibility to exercise the greenshoe option, allowing it to accept additional subscriptions of up to Rs 2,000 crore for each security during auctions. In addition, weekly borrowing through Treasury Bills (T-Bills) during the first quarter (Q1) of FY27 is estimated at Rs 24,000 crore for a period of 12 weeks. This includes Rs 12,000 crore through 91-day T-Bills, Rs 6,000 crore through 182-day T-Bills, and Rs 6,000 crore through 364-day T-Bills.

To address temporary mismatches in government accounts, the RBI has set the Ways and Means Advances (WMA) limit for H1 FY27 at Rs 2.50 lakh crore. (ANI)