Centre announces borrowing plan of Rs 6.77 lakh crore for H2FY26

Centre keeps to its borrowing target

The Centre will likely borrow Rs 6.77 lakh crore in the second half of the fiscal through dated securities, according to the October-March borrowing plan released on September 26.

Of this Rs 6.77 lakh crore, Rs 10,000 crore is expected to be raised through issuance of sovereign green bonds, the Centre said. H2FY26 will likely see 22 auctions, with the first starting from September 29, where the government would be look to raise Rs 32,000 crore through 10-year GoI bonds, and the final one scheduled on March 6, 2026.

Securities with over 10-year tenure have had over three-fourths share in the total borrowing during the second half, as per Moneycontrol analysis of the calendar.

The Centre is estimated to have borrowed over Rs 8 lakh crore in the fiscal year's first half.

The government had budgeted Rs 14.82 lakh crore as gross borrowing for FY26, higher than the Rs 14.01 lakh crore budgeted for the previous year. The Centre is likely to keep to its fiscal deficit target of 4.4 percent for the current fiscal, despite a slip in revenue, owing to GST cuts announced on September 4.

The Reserve Bank of India’s higher than expected dividend of Rs 2.7 lakh crore is also expected to help in keeping the deficit in check.