Between April and July 2026, India’s net small‑savings collections hit Rs 1.54 lakh crore, a 56% jump over the same period in 2025 and already 43% of the FY27 target.
The rise comes as the Centre trimmed its gross market borrowing estimate for FY27 to Rs 15.99 lakh crore from Rs 17.2 lakh crore, while projecting net financing of Rs 3.87 lakh crore through small savings.
Interest rates across the schemes keep them attractive: 8.2% for Senior Citizens Savings Scheme and Sukanya Samriddhi Yojana, 7.7% for National Savings Certificate, 7.1% for Public Provident Fund, and 6.9% for one‑year deposits. The government backing and tax‑free benefits make them a safe bet.
FY26 net small‑savings collections were originally pegged at Rs 3.06 lakh crore, raised to Rs 3.42 lakh crore, and ultimately exceeded the revised figure by over Rs 1 lakh crore. FY27 has a target of Rs 3.59 lakh crore, about 5% higher than the previous year’s estimate.
A Finance Ministry official told ET that "Investors continue to seek predictable returns backed by the government, despite increased participation in equities." The steady inflow is expected to keep the scheme ahead of the FY27 target as the March quarter traditionally sees a surge.
The Ministry will likely maintain the momentum through the full fiscal year, helping the government reduce its dependence on market borrowing and secure the projected Rs 3.59 lakh crore small‑savings goal.