Centre to Borrow Rs 7,86,000 Crore in H2 of FY 2026-27

The Government of India, after consulting the Reserve Bank of India, has fixed its gross market borrowing for the closing half of the current financial year at Rs 7,86,000 crore. The decision, made public on 25 September 2026, covers the October to March stretch of FY 2026-27, the half that economists watch closely because it sets the tone for bond yields going into the next Budget.

How the money will be raised

The amount is to be mopped up through 23 weekly auctions of dated securities. Within that total, Rs 15,000 crore is set aside for Sovereign Green Bonds, the paper through which the Centre finances environment-friendly projects. Securities will be sold across eight maturity buckets, the shortest running three years and the longest fifty.

The heaviest weight sits in the ten-year bucket, which takes 26.3 per cent of the programme. Next comes paper of fifteen years at 17.6 per cent, while five-year securities account for 12.1 per cent. Spreading the sale across such a wide range of tenors keeps repayments from bunching up in any single year.

The full-year picture

Across the whole of FY 2026-27 the Centre now expects to raise Rs 15,99,506 crore through dated securities. That sits well below the Budget Estimate of Rs 17,20,000 crore announced earlier for the same year.

Treasury Bills and the WMA ceiling

Short-tenor funds will be tapped as well. In the third quarter of the financial year the government plans to pick up Rs 23,000 crore every week across 13 auction weeks by issuing Treasury Bills. Of that weekly figure, Rs 8,000 crore apiece is expected from the 91-day and the 182-day bill, and Rs 7,000 crore from the 364-day bill.

For stretches when money coming in does not match money going out, the RBI has capped Ways and Means Advances for the half-year at Rs 50,000 crore. The Centre also retains the greenshoe option, under which it may hold on to an extra subscription of up to Rs 2,000 crore on any security named in an auction notification, and will carry on switching and buying back paper to even out its repayment calendar.