NDA govt to borrow Rs 8 lakh crore in H1 FY26; Rs 10,000 crore of this to be raised from SGrBs

The Ministry of Finance has announced its borrowing plan for the first half of FY 2025-26, revealing that the government will raise Rs 8 lakh crore, which accounts for 54% of the total market borrowing of Rs 14.82 lakh crore for the year.

The total gross market borrowing of Rs 8.00 lakh crore will be conducted through 26 weekly auctions, with securities maturing over periods ranging between 3 and 50 years. To support environmentally sustainable projects, a portion of this borrowing, totaling Rs 10,000 crore, will be acquired through Sovereign Green Bonds (SGrBs).

The distribution of borrowing (including SGrBs) among different maturities is as follows:

3-year securities: 5.3%
5-year securities: 11.3%
7-year securities: 8.2%
10-year securities: 26.2%
15-year securities: 14.0%
30-year securities: 10.5%
40-year securities: 14.0%
50-year securities: 10.5%

The Government reserves the right to utilize the greenshoe option to secure an additional subscription amounting up to Rs 2,000 crore for each of the securities listed in the auction notifications.

In the first quarter (Q1) of FY 2025-26, weekly borrowing through the issuance of Treasury Bills is projected to be Rs 19,000 crore for a period of 13 weeks, with allocations of Rs 9,000 crore for the 91-day T-bill, Rs 5,000 crore for the 182-day T-bill, and Rs 5,000 crore for the 364-day T-bill.

To address temporary imbalances in Government accounts, the Reserve Bank of India has set the Ways and Means Advances (WMA) limit for the first half (H1) of FY 2025-26 at Rs 1.50 lakh crore.