India Sets Borrowing Target of ₹7.86 Trillion for FY27

The Government of India announced a borrowing plan of ₹7.86 trillion through dated securities for the second half of the 2026-27 fiscal year, spanning October to March. This target is ₹1.2 trillion lower than the original budget estimate of ₹17.2 trillion, a reduction intended to align with a fiscal consolidation goal of keeping the fiscal deficit at 4.3% of GDP.

The borrowing program will be executed via 23 weekly auctions and includes ₹150 billion in Sovereign Green Bonds. To reduce rollover risk and increase the weighted average maturity of its debt, the government shifted its focus toward longer-tenor securities, such as 15-year bonds, while reducing the share of shorter-term instruments. The government also reserved a greenshoe option to retain up to ₹2,000 crore in additional subscriptions per security.

In addition to dated securities, the government plans to raise ₹2.99 lakh crore through Treasury Bill auctions during the October-December 2026 quarter. These auctions will occur every Wednesday starting October 7, split across 91-day, 182-day, and 364-day bills. To manage temporary cash flow mismatches, the Reserve Bank of India set the Ways and Means Advances limit at ₹50,000 crore.