CHENNAI: The Government of India will borrow Rs 6.77 lakh crore through market loans in the second half of the financial year 2025-26 (H2 FY26). The borrowing forms part of the overall budgeted gross market borrowing of Rs 14.13 lakh crore for the full year.
According to the Finance Ministry, the H2 borrowing will be conducted through dated securities, with weekly issuances ranging between ₹32,000 crore and Rs 34,000 crore. The plan also includes the issuance of Sovereign Green Bonds (SGrBs) worth Rs 10,000 crore, continuing the Centre’s strategy of mobilising funds for environmentally sustainable projects.
The ministry said that the borrowing schedule has been designed in consultation with the Reserve Bank of India (RBI) to ensure a balanced market supply, stable yield curve management, and alignment with the government’s expenditure needs.
During the first half of FY26, the government had borrowed Rs 7.36 lakh crore, nearly 52 percent of the full-year borrowing target. With the second half schedule in place, the Centre aims to smoothly meet its financing requirements without causing market disruption.
Analysts noted that the inclusion of SGrBs in the H2 calendar highlights India’s growing focus on green financing. Proceeds from these bonds will be earmarked for projects in renewable energy, clean transport, energy efficiency, and other low-carbon initiatives.
The government also reaffirmed that it remains committed to its fiscal consolidation roadmap, targeting a reduction in the fiscal deficit while ensuring adequate funds for infrastructure and social sector spending.