Government’s Borrowing Programme for H1 of FY 2025-26

The Government of India, in consultation with the Reserve Bank of India (RBI), has finalized its borrowing programme for the first half (H1) of FY 2025-26. The borrowing plan aims to meet the government’s financing needs while ensuring market stability and efficient debt management.

Borrowing Plan Overview

  • The Gross Market Borrowing for FY 2025-26 is ₹14.82 lakh crore.
  • In H1 (April-September 2025), ₹8.00 lakh crore (54%) will be raised through the issuance of dated securities, including ₹10,000 crore of Sovereign Green Bonds (SGrBs).
  • The borrowing will be conducted through 26 weekly auctions.

Borrowing Distribution Across Maturities

  • The ₹8.00 lakh crore market borrowing will be spread across different maturity periods, ensuring a balanced debt profile:
MaturityShare in Borrowing
3-year5.3%
5-year11.3%
7-year8.2%
10-year26.2%
15-year14.0%
30-year10.5%
40-year14.0%
50-year10.5%
  • Sovereign Green Bonds (SGrBs) of ₹10,000 crore will be part of this borrowing.
  • The Government will conduct switching and buyback of securities to manage redemptions smoothly.

Additional Borrowing Mechanisms

Greenshoe Option: The Government reserves the right to retain an additional ₹2,000 crore against each security during auctions.

Treasury Bill (T-bill) Issuance in Q1 of FY 2025-26:

  • Total weekly borrowing: ₹19,000 crore
    • 91-day T-bill: ₹9,000 crore
    • 182-day T-bill: ₹5,000 crore
    • 364-day T-bill: ₹5,000 crore

Ways and Means Advances (WMA) Limit: To address temporary mismatches in Government accounts, the RBI has set the WMA limit for H1 FY 2025-26 at ₹1.50 lakh crore.

Significance

  • The H1 borrowing plan reflects a structured approach to debt management, ensuring adequate liquidity while minimizing market disruptions.
  • The inclusion of Sovereign Green Bonds (SGrBs) aligns with India’s commitment to sustainable financing.
  • The diverse maturity profile ensures a balanced debt structure and reduces refinancing risks.
  • The RBI’s WMA framework provides short-term liquidity support, ensuring fiscal stability.
  • This borrowing strategy plays a crucial role in managing fiscal deficits and sustaining economic growth in FY 2025-26.

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