The Ministry of Finance has announced its borrowing plan for the first half of FY 2025-26, targeting Rs 8 lakh crore through market borrowings. The government will conduct 26 weekly auctions across different maturities, including Sovereign Green Bonds for sustainable projects.
The Ministry of Finance has unveiled its borrowing strategy for the first half (H1) of the fiscal year 2025-26, planning to raise Rs 8 lakh crore through market borrowings. This amount accounts for 54% of the total estimated market borrowing of Rs 14.82 lakh crore for the full financial year.
According to the Finance Ministry, the funds will be raised through 26 weekly auctions, with maturities ranging from three years to 50 years. As part of this borrowing plan, the government will also issue Rs 10,000 crore worth of Sovereign Green Bonds to finance environmentally sustainable projects.
Breakdown of Borrowing Plan
The borrowing plan will be implemented through a mix of different maturities to manage market liquidity effectively. Treasury Bills worth Rs 19,000 crore will also be issued weekly. The government will continue to focus on ensuring a stable debt market while catering to the country’s financial needs.
The Ministry emphasized that its borrowing strategy aligns with its fiscal consolidation goals and efforts to maintain macroeconomic stability.
Sovereign Green Bonds for Sustainable Projects
A portion of the borrowing, Rs 10,000 crore, will be dedicated to Sovereign Green Bonds, which will be used to finance projects related to clean energy, climate resilience, and sustainable infrastructure.
The announcement of the borrowing plan is expected to influence bond yields and investor sentiment in the Indian financial markets. Analysts believe that the structured approach to borrowing will help maintain liquidity while meeting fiscal targets efficiently.
The borrowing will be closely monitored by market participants, as it plays a critical role in shaping interest rates and government financing strategies for the upcoming fiscal year.
