Centre’s bond roadmap: Lower borrowing, longer tenors, and a green push
borrowing roadmap for the first half of FY26, announcing plans to raise Rs 8 lakh crore through bond issuances between April and September, lower than the earlier estimate of Rs 8.4 lakh crore.
As part of its evolving debt strategy, the Centre will also tap into the sustainable finance market, proposing to issue Rs 10,000 crore worth of green bonds during this period.
The Ways and Means Advances (WMA) limit, a short-term credit facility provided by the Reserve Bank of India, has been set at Rs 1.5 lakh crore for H1FY26.
In a calibrated shift in borrowing composition, the government will increase the share of 10-year bond issuances to 26.2%, up from 24.3% in April–September 2024. Meanwhile, borrowings from 30 to 50-year maturity bonds will be reduced to 35%, down from 38% in the same period last year.
The borrowing program will cover a wide range of maturities, including 3, 5, 7, 10, 15, 30, 40, and 50-year securities, offering a diversified maturity profile to market participants.
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To manage redemptions more efficiently, the government has indicated plans for security switches and buybacks. Additionally, it retains the option to exercise the greenshoe facility, allowing for the issuance of additional securities if needed.
In the short-term debt market, the Centre will raise funds through weekly treasury bill auctions. In Q1FY26, Rs 19,000 crore will be borrowed each week over a 13-week period.
“The scheduled borrowing is almost at the same level as last year and would be viewed favorably by the