The central authorities has introduced that it’s going to borrow Rs 6.77 lakh crore from the market within the second half of the present monetary yr (October 2025 to March 2026), modestly trimming its full-year borrowing projection. The revised determine is RS 10,000 crore decrease than the borrowing goal introduced within the Union Funds for FY 2025-26.
The federal government’s Gross Market Borrowing of Rs 6.77 lakh crore shall be executed by way of 22 weekly auctions, concluding on March 6, 2026. The borrowing shall be distributed throughout securities with maturities of three, 5, 7, 10, 15, 30, 40, and 50 years. The allocation of borrowing, together with State Authorities Borrowings (SGrBs), throughout these maturities is as follows: 3-year (6.6%), 5-year (13.3%), 7-year (8.1%), 10-year (28.4%), 15-year (14.2%), 30-year (9.2%), 40-year (11.1%), and 50-year (9.2%).
Moreover, the Authorities will proceed implementing switching and buyback operations to smoothen the redemption profile of excellent securities.
In a press release, the Finance Ministry mentioned: “The Authorities of India plans to borrow ₹6.77 lakh crore within the second half of the fiscal yr 2025-26 (H2: FY26) by way of dated securities, together with ₹10,000 crore by way of issuance of Sovereign Inexperienced Bonds (SGrBs).”
H1 Borrowing
For the April–September interval, the Centre had initially deliberate to boost Rs 8 lakh crore. Nonetheless, it ended up borrowing Rs 7.95 lakh crore, falling wanting the goal by Rs 5,000 crore. The adjustment within the first half has been mirrored within the October–March plan, successfully lowering the annual borrowing programme.
Public sale calendar
In keeping with the federal government, the second-half borrowing of Rs 6.77 lakh crore shall be raised by way of 22 weekly auctions of dated securities, concluding by March 6, 2026. These auctions will embrace issuance throughout completely different maturities to make sure a balanced debt construction and market stability.
Full-12 months Outlook
Within the Union Funds for FY26, gross borrowing was pegged at Rs 14.82 lakh crore. With the revised borrowing in each halves of the yr, the full gross borrowing for FY26 now stands at Rs 14.72 lakh crore, barely beneath the Funds estimate.
The federal government’s borrowing programme is an important part of fiscal administration, because it helps finance the fiscal deficit whereas additionally supporting expenditure plans, together with infrastructure investments and welfare schemes.
Significance of Sovereign Inexperienced Bonds
SGBs are government-issued debt securities designed to finance initiatives with constructive environmental affect. The funds raised by way of these bonds are solely directed towards inexperienced initiatives, akin to renewable power, sustainable agriculture, waste administration, and different eco-friendly initiatives.
Notably, the plan consists of Rs 10,000 crore of borrowing by way of Sovereign Inexperienced Bonds, reflecting the Centre’s continued deal with financing climate-friendly and sustainable initiatives.
Market analysts say the marginal discount in borrowing is a constructive sign for bond markets, because it might ease upward strain on yields, significantly when inflation and rate of interest traits stay in focus.
How do SGrBs work
While you put money into sovereign inexperienced bonds, your funds straight help initiatives with constructive environmental affect. These are government-backed bonds in India, which suggests the federal government pays common curiosity—normally semi-annually—and returns the principal at maturity.
For instance, if you happen to make investments Rs 10,000 in a 10-year sovereign inexperienced bond with a 7.29% rate of interest, you’ll earn roughly Rs 364.50 each six months. On the finish of 10 years, you’ll obtain your Rs 10,000 principal together with the ultimate curiosity cost.
