Government to Mobilise Rs 8 Lakh Crore via Bonds in H1 of FY26

The Indian government plans to raise Rs 8 lakh crore through dated securities in the first half (H1) of the financial year 2025-26 to bridge the fiscal deficit. This is part of the total gross market borrowing of Rs 14.82 lakh crore estimated for FY26, as announced by the finance ministry. The borrowing will be carried out through multiple weekly auctions and will include Rs 10,000 crore of Sovereign Green Bonds (SGrBs). The fiscal deficit for FY26 is estimated at 4.4% of GDP, amounting to Rs 15.68 lakh crore. The government will also employ small savings and other instruments to finance the shortfall.

Key Highlights

  • Total Market Borrowing: Rs 14.82 lakh crore in FY26.
  • First Half Borrowing (H1 FY26): Rs 8 lakh crore (54% of total borrowing).
  • Types of Securities: Issuance of dated securities across various maturities (3 to 50 years).
  • Sovereign Green Bonds (SGrBs): Rs 10,000 crore included in the borrowing plan.
  • Fiscal Deficit: Estimated at Rs 15.68 lakh crore (4.4% of GDP) for FY26.
  • Net Market Borrowings: Rs 11.54 lakh crore via dated securities.

Revenue & Expenditure

  • Total Receipts (excluding borrowings): Rs 34.96 lakh crore.
  • Total Expenditure: Rs 50.65 lakh crore.
  • Net Tax Receipts: Rs 28.37 lakh crore.

Weekly Borrowing Auctions

  • Range: Rs 25,000 crore to Rs 36,000 crore per auction.
  • 26 weekly auctions planned.

Maturity Share Distribution

  • 3-year: 5.3%
  • 5-year: 11.3%
  • 7-year: 8.2%
  • 10-year: 26.2%
  • 15-year: 14%
  • 30-year: 10.5%
  • 40-year: 14%
  • 50-year: 10.5%

Treasury Bills (T-Bills)

  • Borrowing (Q1 FY26): Rs 19,000 crore per week.
  • 91-day T-bill: Rs 9,000 crore
  • 182-day T-bill: Rs 5,000 crore
  • 364-day T-bill: Rs 5,000 crore

Ways and Means Advances (WMA) Limit

  • Rs 1.50 lakh crore for H1 FY26.

Flexibility Measures

  • The government, in consultation with RBI, may modify issuance terms, including notified amounts, issuance periods, and instrument types (floating rate bonds, inflation-indexed bonds, etc.), based on market conditions.
Summary/Static Details
Why in the news? Government to Mobilise Rs 8 Lakh Crore via Bonds in H1 of FY26
Total Market Borrowing (FY26) Rs 14.82 lakh crore
Borrowing in H1 FY26 Rs 8 lakh crore
Sovereign Green Bonds (SGrBs) Rs 10,000 crore
Fiscal Deficit (FY26) Rs 15.68 lakh crore (4.4% of GDP)
Net Market Borrowing (Dated Securities) Rs 11.54 lakh crore
Total Receipts (Excl. Borrowings) Rs 34.96 lakh crore
Total Expenditure Rs 50.65 lakh crore
Net Tax Receipts Rs 28.37 lakh crore
Weekly Borrowing (Auctions) Rs 25,000-36,000 crore
Treasury Bill Borrowing (Q1 FY26) Rs 19,000 crore per week
WMA Limit (H1 FY26) Rs 1.50 lakh crore
Maturity Range 3 to 50 years
Shivam

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