NEW DELHI: Govt will raise nearly Rs 7.9 lakh crore from securities in the second half of this fiscal year, reducing the total borrowing for the current financial year by Rs 1,20,494 crore despite global headwinds.The reduction in total borrowing indicates govt’s commitment to fiscal prudence.A senior finance ministry official said the reduction is mainly due to switching G-secs maturing in 2026-27 of Rs 1,14,286 crore, a conscious debt-management strategy of govt. “During 2026-27, govt is expected to have market borrowing of Rs 15,99,506 crore through dated securities, as compared to Budget Estimates of Rs 17,20,000 crore for the ongoing financial year,” the finance ministry said in a statement.“Govt, in consultation with the Reserve Bank of India (RBI), has decided to borrow Rs 7,86,000 crore in the second half (H2) of FY 2026-27. This includes Sovereign Green Bonds (SGrBs) issuance of Rs 15,000 crore,” it said.During the first half ending this month, govt would mobilise Rs 8,13,506 crore from bonds, slightly lower than the target of Rs 8.2 lakh crore, to fund the revenue gap.Finance Minister Nirmala Sitharaman in the Budget presented on Feb 1 had proposed to borrow Rs 17.2 lakh crore to fund its fiscal deficit projected at 4.3% of the GDP. In absolute terms, the fiscal deficit is pegged at Rs 16.9 lakh crore for 2026-27. agencies
