Higher redemptions of bonds in FY26 leads to around 6% rise in gross government borrowing

Union Budget 2025

Government’s gross market borrowing through dated securities announced in the Union Budget 2025 was around 6 percent higher for financial year 2025-26, than previous fiscal as higher redemptions are lined up.

The government has announced Rs 14.82 lakh crore gross market borrowing for FY26, as compared to Rs 14.01 lakh crore for FY25. However, net market borrowing to finance the fiscal deficit is lower at Rs 11.54 lakh crore for FY26, from Rs 11.63 lakh crore in FY25.

In the first half of current financial year, the centre has borrowed nearly Rs 7 lakh crore and plans to borrow Rs 6.61 lakh crore in the second half.

“To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs 11.54 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs 14.82 lakh crore,” Finance Minister Nirmala Sitharaman said while announcing the budget 2025.

In the next financial year, government securities worth Rs 3.96 lakh crore is due to get mature between May and January, according to the Reserve Bank of India’s data.

The higher maturities are lined up between November and January, worth Rs 1.89 lakh crore.

The borrowing number is key since the central government finances its fiscal deficit mainly through issuing dated securities.