Centre to borrow ₹7.86 lakh crore in H2, cuts FY27 borrowing target by ₹1.2 lakh crore
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The Centre will borrow ₹7.86 lakh crore through dated securities in the second half of FY27, taking its total market borrowing for the financial year to ₹15,99,506 crore, down ₹1,20,494 crore from the Budget estimate of ₹17,20,000 crore.
“During 2026-27, the Government of India is expected to have market borrowing of ₹15,99,506 crore through dated securities, as compared to Budget Estimates of ₹17,20,000 crore for the ongoing financial year,” the finance ministry said in a statement.
The government, in consultation with the Reserve Bank of India (RBI), has decided to borrow ₹7,86,000 crore in the second half of FY27. This includes ₹15,000 crore through Sovereign Green Bonds (SGrBs).
During the first half ending this month, the government is expected to mobilise ₹8.1 lakh crore through bonds, slightly below the ₹8.2 lakh crore target.
H2 borrowing to be spread across eight maturities
The ₹7.86 lakh crore borrowing programme in the second half will be completed through 23 weekly auctions, the finance ministry said. The borrowing will be spread across securities with maturities of three, five, seven, 10, 15, 30, 40, and 50 years.
Including SGrBs, the maturity-wise share of the borrowing will be 6.9% for three-year securities, 12.1% for five-year, 9.1% for seven-year, 26.3% for 10-year, 17.6% for 15-year, 9.2% for 30-year, 8.9% for 40-year, and 9.9% for 50-year securities.
Meanwhile, the government, in consultation with the RBI, has released the calendar for the issuance of Treasury Bills for the quarter ending December 2026.
The government and the RBI will have the flexibility to modify the indicative amount and timing of Treasury Bill auctions depending on funding requirements, evolving market conditions and other relevant factors, after giving due notice to the market.
The calendar may also be changed due to intervening holidays or other circumstances. Any such changes will be communicated through press releases.
Forex reserves fall $14.88 billion to $765.9 billion
Separately, India's foreign exchange reserves declined by $14.881 billion to $765.901 billion in the week ended September 18, according to RBI data released on Friday. In the previous reporting week, reserves had declined by $4.924 billion to $780.782 billion.
Foreign currency assets (FCAs), the largest component of India's reserves, fell by $14.816 billion to $630.980 billion during the week under review. Expressed in US dollar terms, FCAs include the impact of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.
The value of gold reserves increased by $68 million to $111.292 billion during the week, the RBI said. Special Drawing Rights declined by $106 million to $18.739 billion while India's reserve position with the International Monetary Fund stood at $4.89 billion.