Key Highlights
- Government intends to mobilise Rs 8 lakh crore through dated bonds in the first half of FY 2025‑26.
- Overall market borrowing for FY 2026 is projected at Rs 14.82 lakh crore, of which Rs 11.54 lakh crore will be net dated‑security issuance.
- Rs 10,000 crore of the programme is earmarked for Sovereign Green Bonds.
- The fiscal deficit is forecast at 4.4 % of GDP, equating to Rs 15.68 lakh crore.
- Weekly auctions, ranging between Rs 25,000 crore and Rs 36,000 crore, will be conducted 26 times.
Detailed Insights
The finance ministry disclosed that the Union will raise half of its anticipated FY 26 market borrowing—Rs 8 lakh crore—through a series of weekly dated‑security auctions spanning maturities from three to fifty years. Net proceeds after accounting for Treasury Bill borrowings are expected to total Rs 11.54 lakh crore. In addition to conventional bonds, the plan incorporates Rs 10,000 crore of Sovereign Green Bonds, designed to fund environmentally‑focused projects.
Fiscal pressures remain pronounced: total receipts (excluding borrowings) are estimated at Rs 34.96 lakh crore against expenditures of Rs 50.65 lakh crore, leaving a gap of Rs 15.68 lakh crore. To bridge this shortfall, the government will also leverage small‑savings instruments and Ways and Means Advances up to Rs 1.5 lakh crore during H1.
Flexibility is built into the framework. In coordination with the Reserve Bank of India, the Treasury may adjust issue sizes, tenors, or introduce floating‑rate and inflation‑indexed bonds should market conditions warrant.
Key Concepts
- Dated Securities: Long‑term government bonds with fixed maturities, typically ranging from three to fifty years.
- Sovereign Green Bonds (SGrBs): Debt instruments issued by the government expressly to finance projects with environmental benefits.
- Ways and Means Advances (WMA): Short‑term credit facilities extended by the RBI to the central government to smooth cash‑flow mismatches.
- Fiscal Deficit: The gap between total government expenditure and total revenue (excluding borrowings), expressed here as 4.4 % of GDP.