Government Trims FY27 Borrowing by ₹1.2 Trillion; ₹7.86 Trillion Dated Bond Sales Planned for H2

Key facts

• The Centre lowered its FY27 gross market borrowing estimate to ₹15.995 trillion through dated securities, about ₹1.205 trillion below the original budget estimate of ₹17.2 trillion and ₹9,500 crore below the March-revised figure of ₹16.09 trillion.
• The government plans to raise ₹7.86 trillion through dated government securities in H2 FY27, comprising ₹7.71 trillion in conventional securities and ₹15,000 crore in sovereign green bonds, via 23 weekly auctions between October and March.
• Sovereign green bonds of ₹15,000 crore will be issued across five auctions of ₹3,000 crore each, and the greenshoe facility allows additional subscriptions of up to ₹2,000 crore per security.
• Of the H2 borrowing, 26.3% comes from 10-year securities, 17.6% from 15-year and 12.1% from five-year securities, with maturities ranging from 3 to 50 years.
• The first auction week (28 September–2 October) includes ₹9,000 crore of three-year, ₹12,000 crore of seven-year, ₹9,000 crore of 30-year securities and ₹3,000 crore of 30-year sovereign green bonds; the final (23rd) auction week is 1–5 March 2027 with ₹35,000 crore of 10-year securities.
• The Centre's revenue receipts stood at ₹12.68 trillion during April–July, 35.9% of the full-year budget estimate, with net tax revenue at ₹8.45 trillion (29.5%) and non-tax revenue at ₹4.23 trillion (63.5%), per Controller General of Accounts data released on 31 August.
• The fiscal deficit stood at ₹4.55 trillion, or 26.8% of the full-year target, at end-July, against 29.9% a year earlier; FY27 budgets a deficit of ₹16.96 trillion (4.3% of GDP) and net tax receipts of ₹28.67 trillion.
• The government will borrow ₹23,000 crore weekly through Treasury bills in Q3 FY27 over 13 auction weeks — ₹8,000 crore each of 91-day and 182-day T-bills and ₹7,000 crore of 364-day T-bills — separate from the ₹7.86 trillion dated borrowing.
• The Reserve Bank of India (RBI) set the government's Ways and Means Advances limit at ₹50,000 crore for H2 FY27.
• Switch auctions may be conducted on the third Monday of every month, and the government retains flexibility to issue floating-rate and inflation-indexed bonds.