The government on Friday has finalised the borrowing plant for fiscal 2027, with borrowings in the first half of the next fiscal is placed at Rs 8.20 lakh crore. The government further said that the Rs 8.20 lakh crore borrowing will be completed through 26 weekly auctions.
Total financial year 2027 gross borrowing is pegged at Rs 16.09 lakh crore and 51% of the borrowing for the next fiscal will be completed in the first half. Gross Market Borrowings in BE 2026-27 was Rs 17.20 lakh crore. Since Budget presentation, switches of G-Sec were conducted, reducing Gross Market borrowing.
The government in its press release on Friday said that Rs 15,000 crore is to be raised via Sovereign Green Bonds in the first half of fiscal 2027. Borrowing will be spread across three to 50 year maturities.
ALSO READ: Defence Boost: Govt Clears Rs 2.38 Lakh Crore Proposals; S-400, Dhanush Guns Among Key Purchases
The 10-year bonds will have the highest share at 29%, with government retaining greenshoe option of up to Rs 2,000 crore per auction.
RBI sets WMA limit at Rs 2.5 lakh crore for the first half of financial year 2027. The government will also use switches or buybacks to smooth redemption profile.
Weekly borrowing through issuance of Treasury Bills in the first quarter of fiscal 2027 is expected to be Rs 24,000 crore for 12 weeks with issuance of Rs 12,000 crore under 91-day T-Bills, Rs 6,000 crore under 182-day T-Bills and Rs 6,000 crore under 364- day T-Bills.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.