Centre To Raise Rs 8 Lakh Crore In H1 FY26 To Meet Fiscal Deficit

The government is all set to raise Rs 8 lakh crore in the first half of the 2025-26 financial year (FY26) through the issuance of dated securities as part of its strategy to manage fiscal requirements and bridge the fiscal deficit. This borrowing forms part of the government’s overall market borrowing plan of Rs 14.82 lakh crore for FY26.

The finance ministry has outlined borrowing will be conducted through multiple weekly auctions, including Rs 10,000 crore worth of Sovereign Green Bonds (SGrBs). The fiscal deficit for FY26 is expected to be 4.4 per cent of GDP, amounting to Rs 15.68 lakh crore. In addition to the market borrowings, the government plans to use small savings and other instruments to cover the fiscal shortfall.

Highlights

Total Market Borrowing: Rs 14.82 lakh crore in FY26
First Half Borrowing (H1 FY26): Rs 8 lakh crore (54 per cent of the total borrowing)
Securities Issuance: Dated securities with maturities ranging from 3 to 50 years
Sovereign Green Bonds (SGrBs): Rs 10,000 crore included in the borrowing plan
Fiscal Deficit: Estimated at Rs 15.68 lakh crore (4.4 per cent of GDP) for FY26
Net Market Borrowings: Rs 11.54 lakh crore via dated securities
Revenue and Expenditure
Total Receipts (excluding borrowings): Rs 34.96 lakh crore
Total Expenditure: Rs 50.65 lakh crore
Net Tax Receipts: Rs 28.37 lakh crore
Weekly Borrowing Auctions
The planned range for each auction: Rs 25,000 crore to Rs 36,000 crore
26 weekly auctions planned for FY26
Maturity Share Distribution

3-year: 5.3 per cent
5-year: 11.3 per cent
7-year: 8.2 per cent
10-year: 26.2 per cent
15-year: 14 per cent
30-year: 10.5 per cent
40-year: 14 per cent
50-year: 10.5 per cent

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Treasury Bills (T-Bills)

Borrowing (Q1 FY26): Rs 19,000 crore per week

91-day T-bills: Rs 9,000 crore
182-day T-bills: Rs 5,000 crore
364-day T-bills: Rs 5,000 crore

Ways and Means Advances (WMA) Limit

Rs 1.50 lakh crore for H1 FY26

Flexibility Measures

The government, in collaboration with the Reserve Bank of India (RBI), may adjust issuance terms such as notified amounts, issuance periods, and instrument types (such as floating-rate bonds and inflation-indexed bonds) depending on market conditions.

The government's borrowing strategy highlights its effort to manage the fiscal deficit while maintaining fiscal responsibility and taking advantage of favourable market conditions.