India reduces FY27 market borrowing target to Rs 15.99 lakh crore

The Indian government has announced a revised market borrowing plan for the 2026-27 financial year, reducing its total gross borrowing target to approximately Rs 15.99 lakh crore. This is a significant decrease from the Rs 17.20 lakh crore originally estimated in the Union Budget.

For the second half of the fiscal year (October 2026 to March 2027), the government plans to borrow Rs 7.86 lakh crore through dated securities. This program will be executed via 23 weekly auctions and includes Rs 15,000 crore in Sovereign Green Bonds intended for environmental projects. The maturity profile of these securities will range from three to 50 years, with a strategic focus on longer-duration bonds to increase the Weighted Average Maturity (WAM) and reduce refinancing risks.

Finance Ministry sources indicated that while gross borrowing has been lowered due to better-than-expected tax and non-tax receipts, net market borrowings for financing the fiscal deficit remain aligned with budget levels. This move is intended to signal a continued commitment to fiscal prudence. The government also plans to raise Rs 23,000 crore weekly through Treasury Bills during the October-December quarter.