The Indian government plans to borrow Rs 7.86 lakh crore through bonds during the second half of financial year 2026-27, according to the borrowing calendar released by the Finance Ministry on Friday. The government has cut its FY27 market borrowing target to Rs 15.99 lakh crore, below the budget estimate of Rs 17.20 lakh crore. The revised borrowing plan implies a reduction of Rs 1.21 lakh crore from the initial estimate.
The planned borrowing for the October-March period forms part of the government’s gross market borrowing programme for FY27, which has been pegged at Rs 15.99 lakh crore, compared with the earlier estimate of Rs 17.2 lakh crore.
The government will also raise Rs 15,000 crore through green bonds during the second half of FY27 as part of its market borrowing programme. According to the borrowing calendar, the government will borrow Rs 23,000 crore every week through Treasury Bills during October-December.
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The borrowing mix will include securities across various maturities. Five-year bonds will account for 12.1% of the government’s second-half borrowing, while three-year bonds will constitute 6.9%. The government said it will continue to undertake switching and buyback of securities during the second half of FY27. Such operations are aimed at managing the maturity profile of government debt and can involve exchanging or repurchasing existing securities.
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Ways And Means Advances
The Ways and Means Advances (WMA) limit for the second half of FY27 has been set at Rs 50,000 crore. WMA is a temporary facility that allows the government to manage short-term mismatches between its receipts and expenditure.
The Finance Ministry has released the October-March borrowing calendar detailing the planned issuance schedule and maturity-wise distribution of government securities.
The second-half borrowing programme will be closely watched by the bond market, particularly for its implications for liquidity, government bond yields and the supply of sovereign securities.
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