Government of India to Borrow ₹7.86 Lakh Crore in Second Half of FY 2026-27

The Government of India, after consultations with the Reserve Bank of India (RBI), has decided to borrow ₹7,86,000 crore for the second half (H2) of the financial year 2026-27. For the entire financial year 2026-27, the budget estimates are set at ₹17,20,000 crore, with total market borrowings through dated securities expected to reach ₹15,99,506 crore.

The borrowing of ₹7,86,000 crore scheduled for the second half will be executed through 23 weekly auctions. This borrowing will be distributed across securities with tenures of 3, 5, 7, 10, 15, 30, 40, and 50 years. The distribution of borrowing (including SGRB) across various maturity periods will be as follows: 10-year (26.3%), 15-year (17.6%), 5-year (12.1%), 50-year (9.9%), 30-year (9.2%), 7-year (9.1%), 40-year (8.9%), and 3-year (6.9%).

To simplify the redemption process, the government will continue the process of swapping and buy-back of securities. Additionally, the government reserves the right to utilize the 'Greenshoe option' to maintain additional subscriptions of up to ₹2,000 crore against each security.

During the third quarter of FY 2026-27, the government plans to borrow ₹23,000 crore per week over 13 auction weeks by issuing Treasury Bills (T-bills). This will include ₹8,000 crore under 91-day T-bills, ₹8,000 crore under 182-day T-bills, and ₹7,000 crore under 364-day T-bills.

To address any temporary mismatches in government accounts, the RBI has set the Way and Means Advance (WMA) limit at ₹50,000 crore for the second half of the 2026-27 financial year.