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:
| Maturity | Share in Borrowing |
| 3-year | 5.3% |
| 5-year | 11.3% |
| 7-year | 8.2% |
| 10-year | 26.2% |
| 15-year | 14.0% |
| 30-year | 10.5% |
| 40-year | 14.0% |
| 50-year | 10.5% |
- 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.