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Govt’s sovereign gold bond debt spirals to ₹1.5 lakh cr

Financial Express Hyderabad

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October 14, 2025

THE SHARPRISE in gold prices — over 35% in FY26 — has resulted in the government’s outstanding debt on sovereign gold bonds (SGBs) hitting a record %1.5 lakh crore.

- RAJESH BHAYANI

Currently, the total SGB outstanding is 126 tonne. At current rates, the price of per tonne of gold is ₹1,241 crore. The simple average of prices of the last 58 issues (that have not completed eight years for redemption) is ₹4,227 per gram. Since the government is paying 2.5% interest (on the purchase year’s price) every year, at current prices of gold, the government’s debt has increased by approximately 200%.

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THE SHARPRISE in gold prices — over 35% in FY26 — has resulted in the government’s outstanding debt on sovereign gold bonds (SGBs) hitting a record %1.5 lakh crore.

time to read

1 mins

October 14, 2025

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