India’s states and Union Territories are set to raise approximately ₹2.86 lakh crore from financial markets during the July-September 2025 quarter, the Reserve Bank of India (RBI) said on Saturday.
This move forms part of the broader borrowing roadmap for the fiscal year 2025-26, wherein the central government has projected total borrowings of ₹15.4 lakh crore.
The market borrowing figures have been finalised following consultations between the RBI and the respective state governments and Union Territories. On July 1 alone, borrowings amounting to ₹18,100 crore are scheduled.
This includes contributions from Andhra Pradesh (₹2,000 crore), Assam (₹900 crore), Gujarat (₹1,000 crore), Himachal Pradesh (₹1,200 crore), Kerala (₹2,000 crore), Maharashtra (₹6,000 crore), Rajasthan (₹500 crore), Tamil Nadu (₹2,000 crore), Telangana (₹1,500 crore), and West Bengal (₹1,000 crore).
According to the Union Budget, the Centre plans to borrow ₹15.4 lakh crore from the market during FY 2025-26. Of this, ₹14.82 lakh crore is through gross market borrowing, while ₹8.00 lakh crore — accounting for about 54% — is intended to be raised in the first half of the fiscal year.
The borrowings will be conducted through the issuance of dated securities and spread across 26 weekly auctions. These will include tenures of 3, 5, 7, 10, 15, 30, 40 and 50 years.
The distribution of borrowings across maturities is expected to be: 3-year (5.3%), 5-year (11.3%), 7-year (8.2%), 10-year (26.2%), 15-year (14.0%), 30-year (10.5%), 40-year (14.0%) and 50-year (10.5%), as per the finance ministry’s statement from March.
FM Nirmala Sitharaman, who presented the Budget on February 1, set the fiscal deficit target at 4.4 pc of GDP for FY 2025-26, a reduction from the revised estimate of 4.8% in 2024-25.
The government remains committed to bringing the fiscal deficit below 4.5% of GDP by the end of the financial year.
Fiscal deficit always reflects the gap between total revenue and total expenditure and is indicative of the amount the government needs to borrow.
The Centre has consistently maintained that market borrowings will be primarily directed towards capital expenditure, which it considers largely non-inflationary.
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