Centre to borrow ₹7.86 lakh crore in second half of FY 2026-27, including ₹15,000 crore of Sovereign Green Bonds
On 25 September 2026 the Finance Ministry, in consultation with RBI, announced gross market borrowing of ₹7,86,000 crore in H2 of FY 2026-27, including ₹15,000 crore of Sovereign Green Bonds.
Summary
Market borrowing through dated securities for FY 2026-27 is now expected at ₹15,99,506 crore, against the Budget Estimate of ₹17,20,000 crore. The H2 borrowing will be done through 23 weekly auctions across 3- to 50-year securities; the 10-year tenor has the largest share at 26.3%. The Government keeps the right to retain up to ₹2,000 crore extra per security under the greenshoe option.
Key facts
- H2 borrowing
- ₹7,86,000 crore (incl. ₹15,000 crore Sovereign Green Bonds)
- FY 2026-27
- ₹15,99,506 crore expected vs BE ₹17,20,000 crore
- Auctions
- 23 weekly auctions; tenors 3, 5, 7, 10, 15, 30, 40, 50 years
- Largest share
- 10-year securities, 26.3%
- Greenshoe
- Up to ₹2,000 crore extra per security
Practice MCQs 2 questions
How much gross market borrowing did the Government announce for the second half (H2) of FY 2026-27?
Show answer
Correct answer: B — ₹7,86,000 crore
The H2 borrowing is ₹7,86,000 crore, including ₹15,000 crore of Sovereign Green Bonds.
How much Sovereign Green Bond issuance is included in the Centre's H2 FY 2026-27 borrowing plan?
Show answer
Correct answer: D — ₹15,000 crore
SGrB issuance of ₹15,000 crore is included; ₹2,000 crore is the greenshoe limit per security.