On 26th September 2025, the Government of India, in consultation with the Reserve Bank of India (RBI), announced its borrowing program for the second half (H2) of the fiscal year 2025-26.
Gross Market Borrowing
The government plans to borrow Rs 6.77 lakh crore in H2 FY 2025-26 through dated securities. This includes Rs 10,000 crore raised via Sovereign Green Bonds (SGrBs). The total borrowing will be executed through 22 weekly auctions ending on 6th March 2026.
Borrowing by Maturity
Borrowing will be spread across different maturities as follows:
- 3-year bonds: 6.6%
- 5-year bonds: 13.3%
- 7-year bonds: 8.1%
- 10-year bonds: 28.4%
- 15-year bonds: 14.2%
- 30-year bonds: 9.2%
- 40-year bonds: 11.1%
- 50-year bonds: 9.2%
The government may also use switching or buyback of securities to manage redemption profiles smoothly. Additionally, a greenshoe option is available to retain an extra subscription of up to Rs 2,000 crore for each security.
Treasury Bills (T-Bills) Borrowing
For the third quarter (Q3) of FY 2025-26, weekly borrowing through T-Bills is expected to be Rs 19,000 crore over 13 weeks. The issuance will include:
- 91-day T-Bills: Rs 7,000 crore
- 182-day T-Bills: Rs 6,000 crore
- 364-day T-Bills: Rs 6,000 crore
Ways and Means Advances (WMA)
To manage temporary mismatches between government receipts and payments, the RBI has set the WMA limit at Rs 50,000 crore for the second half of FY 2025-26.
Comparison and Fiscal Outlook
This borrowing of Rs 6.77 lakh crore is slightly lower than the Rs 6.82 lakh crore borrowed in the same period last year. The total estimated gross borrowing for FY 2025-26 is now Rs 14.72 lakh crore, slightly below the earlier estimate of Rs 14.82 lakh crore. The government aims to maintain a fiscal deficit target of 4.4%, helped by the expected dividend of more than Rs 2.7 lakh crore from the RBI.
The first auction of H2 will start on 29th September 2025, with the government targeting Rs 32,000 crore through 10-year Government of India bonds. The last auction for the period will be held on 6th March 2026.
