Government plans to borrow Rs 8 lakh crore in first half of FY 2025-26
The Ministry of Finance in its press released has announced its finalised borrowing programme for the first half (H1) of FY 2025-26. The government has planned a Gross Market borrowing of Rs 14.82 lakh crore budgeted for FY 2025-26, of which Rs 8 lakh crore are to be borrowed in H1 through issuance of dated securities, including Rs 10,000 crore of Sovereign Green Bonds to fund environmental positive projects.
The government has planed to borrow Rs 8 lakh crore via 26 weekly auctions with market borrowing spreading over 3, 5, 7, 10, 15, 30, 40 and 50-year securities. Meanwhile, the share of borrowing (including Sovereign Green Bonds) under different maturities will be 5.3% for 3-year maturity, 11.3% for 5-year maturity, 8.2% for 7-year maturity, 26.2% for 10-year maturity, 14% for 15-year maturity, 10.5% for 30-year maturity, 14% for 40-year maturity and 10.5% for 50-year maturity. Besides, the government will continue to reserve the right to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications.
The government will also issue Treasury Bills in the first quarter (Q1) of FY 2025-26 to borrowed Rs 19000 crore for 13 weeks with issuance of Rs 9,000 crore under 91-day T-bill, Rs 5,000 crore under 182-day T-bill and Rs 5,000 crore under 364-day T-bill. The Reserve Bank of India (RBI) has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2025-26 at Rs 1.50 lakh crore to take care of temporary mismatches in Government accounts.
