The Central government plans to borrow Rs 8 lakh crore in the first half of 2025-26, accounting for 54% of the total Rs14.82 lakh crore budgeted for the full year. The borrowings will be through 3, 5, 7, 10, 15, 30, 40, and 50-year securities, with 65% of the Rs 8 lakh crore raised via securities with tenures of up to 15 years. The 10-year securities will form the largest share, totaling Rs 2 lakh crore.
“The gross market borrowing of Rs 8 lakh crore shall be completed through 26 weekly auctions and will be spread across various tenures,” the Finance Ministry said in a statement on Thursday.
The government will raise Rs 84,000 crore through 50-year securities in six tranches of Rs 14,000 crore each. These bonds, introduced in 2023-24 to cater to pension funds and insurance companies, continue to be a key borrowing instrument.
Additionally, Rs 10,000 crore will be raised through Sovereign Green Bonds in the first half, in two tranches of Rs 5,000 crore each. In the previous year, green bond issuances were also around Rs 10,000 crore. The government has budgeted Rs 48,000 crore for Sovereign Green Bonds in FY26.
To manage debt maturity, the government will conduct switching and buyback operations to smooth the redemption profile. It also retains the right to exercise a greenshoe option to accept an additional ₹2,000 crore per security in auctions.
Meanwhile, weekly Treasury Bill (T-bill) issuances in Q1 2025-26 will amount to Rs 19,000 crore, with Rs 9,000 crore from 91-day T-bills, Rs 5,000 crore from 182-day T-bills, and Rs 5,000 crore from 364-day T-bills.
To address temporary mismatches in government accounts, the Reserve Bank of India has set the Ways and Means Advances (WMA) limit at Rs 1.50 lakh crore for the first half of FY 2025-26.
The government’s gross borrowings in 2025-26 is Rs 14.82 lakh crore compared to Rs 14 lakh crore in 2024-25. The government has set the fiscal deficit target of 4.4% in 2025-26, compared to 4.8% in 2024-25.