The government of India has made a major borrowing proposal, with plans to raise ₹8 trillion ($93.34 billion) by selling bonds from April to September 2025. The initiative is one of the government's measures to raise its fiscal needs for the coming financial year.
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Borrowing Proportion: The ₹8 trillion borrowing will comprise 54% of the overall estimated gross borrowing of ₹14.82 trillion for FY26.
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Auction Schedule: The government will carry out 26 weekly auctions, selling bonds with tenors from 3 to 50 years.
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Green Bonds: As part of the plan is also the issue of ₹10,000 crore of sovereign green bonds, which demonstrates a focus on sustainable finance.
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Fiscal Deficit Target: The government is aiming at a fiscal deficit of 4.4% of GDP for FY26 from 4.8% in the ongoing fiscal year.
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Market Expectations: The analysts had expected borrowing could touch between 56% and 59% of the yearly target.
This strategic borrowing is to provide liquidity and facilitate economic growth while balancing the redemption profile.
Sources: The Print, Reuters, Business Standard