Government to borrow Rs 7.86 lakh crore in H2 FY27, total FY27 borrowing seen below Budget estimate

The full-year market borrowing is expected to remain below the Budget Estimate of Rs 17.20 lakh crore for FY 2026-27, according to the government's borrowing plan finalised in consultation with the Reserve Bank of India.

Rs 7.86 lakh crore H2 borrowing programme will be conducted through 23 weekly auctions and will cover securities with maturities ranging from three years to 50 years, the government said.

The 10-year maturity will account for the largest share of the H2 borrowing at 26.3 per cent, followed by 15-year securities at 17.6 per cent and five-year securities at 12.1 per cent. The 50-year securities will account for 9.9 per cent, while 30-year and 40-year maturities will constitute 9.2 per cent and 8.9 per cent, respectively.

The government said it will continue to undertake switching and buyback of securities to smoothen the redemption profile. It will also retain the option of exercising a greenshoe facility to retain additional subscriptions of up to Rs 2,000 crore against each of the securities indicated in auction notifications.

Separately, the government expects to raise Rs 23,000 crore per week through Treasury Bills during the third quarter of FY27 across 13 auction weeks. This will comprise Rs 8,000 crore each through 91-day and 182-day T-Bills and Rs 7,000 crore through 364-day T-Bills.

For managing any temporary mismatches in government accounts, the RBI has fixed the Ways and Means Advances limit for the second half of FY27 at Rs 50,000 crore, the Ministry of Finance said.

The borrowing programme will guide government securities issuance through the remainder of FY27, with the government set to spread its planned market borrowing across multiple maturities while continuing measures to manage the redemption profile. (ANI)