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Government cuts FY27 market borrowing below budget estimate
Sep-28-2026

The Government of India has scaled down its FY27 market borrowing target from the Budget Estimate, with total market borrowing through dated securities now expected at Rs 15,99,506 crore against the budgeted Rs 17,20,000 crore. In the second half of FY 2026-27 (H2 FY27), the government plans to borrow Rs 7,86,000 crore, including Rs 15,000 crore through Sovereign Green Bonds (SGrBs).

The gross market borrowing of Rs 7,86,000 crore in H2: 2026-27 shall be completed through 23 weekly auctions. The market borrowing will be spread over securities of tenor 3, 5, 7, 10, 15, 30, 40 and 50 years. The share of borrowing (including SGrBs) under different maturities will be: 3-year (6.9%), 5-year (12.1%), 7-year (9.1%), 10-year (26.3%), 15-year (17.6%), 30-year (9.2%), 40-year (8.9%) and 50-year (9.9%).

Further, the Government will continue to carry out switching/buyback of securities to smoothen the redemption profile. The Government will continue to reserve the right to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications.

During the third Quarter of FY 2026-27, Government is expected to borrow Rs 23,000 crore per week in 13 auction weeks through issuance of Treasury Bills (T-Bills). The break up would be Rs 8,000 crore under 91-day T Bills, Rs 8,000 crore under 182-day T-Bills and Rs 7,000 crore under 364-day T-Bills. To take care of temporary mismatches in Government accounts, if any, RBI has fixed the Ways and Means Advances (WMA) limit for H2 of FY 2026-27 at Rs 50,000 crore.


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