Govt Borrowing Plan for H2 FY 2026-27 – 25 September 2026

What happened

On 25 September 2026, the Ministry of Finance, after consulting the Reserve Bank of India (RBI), announced gross market borrowing of ₹7,86,000 crore for the second half (October 2026 to March 2027) of FY 2026-27. This amount includes ₹15,000 crore of Sovereign Green Bonds (SGrBs).

Total dated-securities borrowing for FY 2026-27 is now put at ₹15,99,506 crore, lower than the Budget Estimate of ₹17,20,000 crore. H2 borrowing will be done through 23 weekly auctions of 3, 5, 7, 10, 15, 30, 40 and 50-year papers. The 10-year segment has the largest share (26.3%), followed by 15-year (17.6%).

Background

In Q3 (October to December 2026), the Centre plans to raise 23,000 crore a week through Treasury Bills over 13 weeks: ₹8,000 crore each in 91-day and 182-day bills and ₹7,000 crore in 364-day bills. RBI has set the Ways and Means Advances (WMA) limit at 50,000 crore for H2 to cover temporary gaps between receipts and payments. A greenshoe option of up to ₹2,000 crore per security will continue, along with switches and buybacks.

Why it matters for exams

Questions on government securities, T-Bills, WMA and green bonds are common in RBI Grade B, SBI/IBPS PO and UPSC economy papers. The cut in total borrowing below the Budget Estimate is a useful fiscal data point.

Key facts for exams

• H2 FY27 gross borrowing: ₹7.86 lakh crore, including 15,000 crore of SGrBs
• Full-year FY27 dated borrowing: ₹15,99,506 crore (BE ₹17.20 lakh crore)
• WMA limit for H2: 50,000 crore
• T-Bill tenors: 91, 182 and 364 days; T-Bills are money-market instruments of under one year
• RBI: set up 1 April 1935 under the RBI Act, 1934; HQ Mumbai; Governor Sanjay Malhotra
• Union Finance Minister: Nirmala Sitharaman; Union Budget 2026-27 was presented on 1 February 2026

Practice MCQs

1. What is the gross market borrowing announced for H2 of FY 2026-27?

   (A) ₹6,77,000 crore
   (B) ₹7,86,000 crore
   (C) ₹8,13,506 crore
   (D) 15,99,506 crore

   Answer: (B) – The Finance Ministry announced ₹7.86 lakh crore for H2.

2. What WMA limit has RBI fixed for H2 FY 2026-27?

   (A) ₹25,000 crore
   (B) ₹50,000 crore
   (C) ₹75,000 crore
   (D) ₹1,00,000 crore

   Answer: (B) The WMA limit is ₹50,000 crore.

3. Which maturity has the highest share of H2 FY27 borrowing?

   (A) 5-year
   (B) 10-year
   (C) 15-year
   (D) 50-year

   Answer: (B) – The 10-year paper has a 26.3% share, the highest.

Source: PIB – Ministry of Finance, 25 Sep 2026