H2 FY27 borrowing: ₹7.86 lakh crore, including ₹15,000 crore sovereign green bonds

The H2 borrowing plan: what happened?

Every year the Centre spends more than it earns and borrows the gap. Most of it is raised by selling dated government securities (G-secs). Twice a year the Government and the RBI publish a calendar so markets know how much paper is coming and of what maturity.

• Gross borrowing of ₹7,86,000 crore in H2 of 2026-27, in 23 weekly auctions.
• Includes ₹15,000 crore of Sovereign Green Bonds (SGrBs).
• Dated borrowing for the full year is expected at ₹15,99,506 crore, against a Budget Estimate of ₹17,20,000 crore.
• Tenors of 3, 5, 7, 10, 15, 30, 40 and 50 years; the 10-year paper takes the largest share (26.3%).
• T-Bills in Q3: ₹23,000 crore a week for 13 weeks.
• WMA limit for H2 fixed at ₹50,000 crore.

What are dated securities and T-Bills?

• Dated securities are long-term bonds with a fixed maturity, here from 3 to 50 years.
• Treasury Bills are short-term paper of 91, 182 and 364 days.
• The RBI runs the auctions as the Government’s debt manager.
• Under the greenshoe option the Government may keep up to ₹2,000 crore extra on each security if bids are strong.
• Switches and buybacks swap or retire bonds early so that too much does not fall due in one year.

What are Sovereign Green Bonds?

• Government bonds whose money goes to green projects.
• ₹15,000 crore of them sit inside the H2 amount, not on top of it.

What do the numbers show?

How are the Q3 T-Bills split?

How does the borrowing calendar work?

1. Budget sets the year’s borrowing estimate
2. Government and RBI fix the half-year calendar
3. RBI auctions G-secs every week
4. Greenshoe, switches and buybacks fine-tune the stock
5. WMA covers short cash mismatches

Why does the H2 borrowing plan matter?

What are the challenges in the H2 borrowing plan?

• Long-tenor paper (30, 40 and 50 years) locks in today’s interest rates for decades.
• Heavy redemptions in some years need switches and buybacks.
• Short mismatches in cash flow still need WMA support from the RBI.

What should be done next on the H2 borrowing plan?

• Keep the borrowing calendar predictable through the year.
• Use switches and buybacks to smooth the redemption profile.
• Keep green bond money tracked to eligible projects.

What can Prelims ask on the H2 borrowing plan?

• RBI is the Government’s debt manager and runs G-sec auctions.
• T-Bill maturities: 91, 182 and 364 days.
• Greenshoe option: extra ₹2,000 crore per security.
• WMA = Ways and Means Advances, for temporary mismatches.
• Largest tenor share in H2 2026-27: 10-year (26.3%).

How to write about the H2 borrowing plan in Mains

Practice question (10 marks, 150 words): How does the Government’s half-yearly borrowing calendar help manage public debt? Discuss with reference to the H2 2026-27 plan.

• Intro: ₹7,86,000 crore in 23 weekly auctions.
• Tools: dated securities, T-Bills, green bonds.
• Debt management: tenor mix, switches, buybacks, greenshoe.
• Liquidity: WMA limit of ₹50,000 crore.
• Conclude: predictability lowers borrowing costs.