The decision follows a shift of Rs 1.14 lakh crore of G‑securities maturing in 2026‑27 into the market, a move the Ministry of Finance says is part of a broader debt‑management strategy.
The government will borrow Rs 7.86 lakh crore in the second half of FY 2026‑27, after consulting with the Reserve Bank of India. The plan includes a sovereign green bond issuance of Rs 15 crore, signalling a push toward sustainable finance.
During the first half of the fiscal year, the Ministry plans to mobilise Rs 8.13 lakh crore from bonds—slightly below the target of Rs 8.2 lakh crore—to bridge the revenue gap. The difference, while modest, keeps borrowing within the projected fiscal deficit of 4.3% of GDP.
Finance Minister Nirmala Sitharaman had outlined a borrowing target of Rs 17.2 lakh crore in the February 1 Budget, reflecting the government's commitment to fiscal prudence amid global headwinds.
The borrowing schedule will be executed through the Ministry of Finance’s debt‑management framework, with issuances timed to align with market conditions and the RBI’s policy stance.