BORROWING GOOGLY FOR BONDS

₹17.2 LAKH-CR GROSS BORROWING COULD PUSH G-SEC YIELD BY 5-10 BASIS POINTS

- CHRISTINA TITUS

THE GOVERNMENT'S GROSS borrowing through dated securities will be ₹17.2 lakh crore in 2026-27, Finance Minister Nirmala Sitharaman announced in her Budget proposals.

The net borrowing from dated securities is estimated at ₹11.7 lakh crore. The balance financing is expected to come from small savings and other sources, Sitharaman said.

The gross borrowing is higher than the expected level, which could negatively weigh on the market. This stems largely from a hefty 5.5 lakh-crore repayment in FY27, rather than fresh funding needs.

Market participants had anticipated gross borrowing in the range of 16-17 lakh crore for FY27. For FY26, the government budgeted gross market borrowings at ₹14.8 lakh crore.