New Delhi, Sep 26 (NationPress) The Indian government is set to raise Rs 6.77 lakh crore in the latter half of the fiscal year 2025-26 (H2: FY 2025-26) through the issuance of dated securities, which includes Rs 10,000 crore from Sovereign Green Bonds (SGrBs), as stated by the Finance Ministry on Friday.

This gross market borrowing of Rs 6.77 lakh crore will be executed through 22 weekly auctions until March 6, 2026. The borrowing will encompass securities with maturities of 3, 5, 7, 10, 15, 30, 40, and 50 years. The distribution of borrowing (inclusive of SGrBs) across different maturities is as follows: 3-year (6.6 percent), 5-year (13.3 percent), 7-year (8.1 percent), 10-year (28.4 percent), 15-year (14.2 percent), 30-year (9.2 percent), 40-year (11.1 percent), and 50-year (9.2 percent).

The government will also engage in the switching/buyback of securities to enhance the redemption profile. It retains the option to utilize the greenshoe facility to accept an additional Rs 2,000 crore for each of the securities described in the auction announcements.

During the third quarter (Q3) of FY 2025-26, the weekly borrowing from Treasury Bills is anticipated to be Rs 19,000 crore over 13 weeks, detailing Rs 7,000 crore in 91 DTBs, Rs 6,000 crore in 182 DTBs, and Rs 6,000 crore in 364 DTBs.

To address short-term discrepancies in government payments and inflows, the Reserve Bank of India (RBI) has established the Ways and Means Advances (WMA) limit for H2 of FY 2025-26 at Rs 50,000 crore, as per the statement.

Dated government securities, also known as G-secs, are long-term bonds issued by the government to fund its debts and fulfill expenditure obligations. These securities have a fixed maturity date and a consistent coupon (interest rate) paid semi-annually on their face value, redeemed at par upon maturity. One example is the 7.17 percent GS 2028, a Government of India security that disburses a 7.17 percent coupon every six months and matures in January 2028.

The government has finalized its borrowing strategy for the second half (H2) of FY 2025-26 in collaboration with the RBI. The Centre aims to execute its market borrowings in a staggered approach to prevent liquidity constraints that could impede corporate sector investments and potentially hinder economic growth. Excessive borrowing may also contribute to inflation and exacerbate the fiscal deficit.