The Reserve Bank of India (RBI) has announced that States and Union Territories plan to raise approximately Rs 2.86 lakh crore through market borrowings in the July-September 2025 quarter. This decision follows consultations between the RBI and State Governments/Union Territories.
On July 1, Rs 18,100 crore is proposed to be borrowed, Andhra Pradesh (Rs 2,000 crore), Assam (Rs 900 crore), Gujarat (Rs 1,000 crore), Himachal Pradesh (Rs 1,200 crore), Kerala (Rs 2,000 crore), Maharashtra (Rs 6,000 crore), Rajasthan (Rs 500 crore), Tamil Nadu (Rs 2,000 crore), Telangana (Rs 1,500 crore), and West Bengal (Rs 1,000 crore).
The Indian government plans to borrow Rs 8 lakh crore in the first half of the fiscal year 2025-26, accounting for 54 per cent of the total gross market borrowing of Rs 14.82 lakh crore. This borrowing will be facilitated through 26 weekly auctions, issuing dated securities across various maturities, including.
The share of borrowing (including SGrBs) under different maturities will be: 3-year (5.3 per cent), 5-year (11.3 per cent), 7-year (8.2 per cent), 10-year (26.2 per cent), 15-year (14.0 per cent), 30-year (10.5 per cent), 40-year (14.0 per cent) and 50-year (10.5 per cent), the March finance ministry statement noted.
The gross market borrowing of Rs 8.00 lakh crore shall be completed through 26 weekly auctions, a Ministry of Finance statement had indicated way back in March.
The market borrowing will be spread over 3, 5, 7, 10, 15, 30, 40, and 50-year securities.
Presenting the Union Budget, Finance Minister Nirmala Sitharaman had pegged the 2025-26 fiscal deficit target at 4.4 per cent of GDP for the financial year 2025-26, versus the revised 4.8 per cent in 2024-25.
The government intends to bring the fiscal deficit below 4.5 per cent of GDP by the end of the financial year 2025-26.
The difference between total revenue and total expenditure of the government is termed the fiscal deficit. It is an indication of the total borrowings that the government may need.
As announced in the Union budget on February 1, the government plans to borrow Rs 15.4 lakh crore from the market during FY 2025-26.
The government aims to use its market borrowings for capital expenditure as it is largely non-inflationary.
Inputs from ANI
