Govt plans to borrow ₹8 lakh crore from market in first half of FY26

The Centre is planning to mobilise ₹8 lakh crore through dated securities during the April-September period of 2025-26 to fund the revenue gap, the finance ministry said on Thursday.

Out of the gross market borrowing of ₹14.82 lakh crore estimated for 2025-26, ₹8 lakh crore or 54% is planned to be borrowed in the first half (H1) through the issuance of dated securities, including ₹10,000 crore of Sovereign Green Bonds (SGrBs), according to an official statement.

Finance Minister Nirmala Sitharaman, in the Budget, proposed to borrow ₹14.82 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year.

The fiscal deficit is estimated to be 4.4% of GDP for FY26 compared to 4.8% of the GDP estimated for the current financial year.

In absolute terms, the fiscal deficit is pegged at ₹15,68,936 crore for 2025-26.

To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.54 lakh crore. The balance financing is expected to come from small savings and other sources.

"Coming to 2025-26, the total receipts other than borrowings and the total expenditure are estimated at ₹34.96 lakh crore and ₹50.65 lakh crore, respectively. The net tax receipts are estimated at ₹28.37 lakh crore," Sitharaman had said in her Budget speech.