India lowers borrowing target for FY26, focuses on shorter-term bonds
India just lowered its borrowing goal for the 2025-26 financial year to ₹14.72 lakh crore, down from the earlier ₹14.82 lakh crore.
After talks with the RBI and market players, the government is switching gears—focusing more on shorter-term bonds and planning to borrow ₹6.77 lakh crore through dated securities (with a slice for green bonds too).
Thakur reaffirms commitment to 4.4% fiscal deficit target
Long-term (30-50 year) bonds are getting less love, dropping to 29.5% of total borrowing, while five- and 10-year bonds will see a small bump in share.
The plan is to hold 22 weekly auctions, with bigger 10-year bond sales—₹32,000 crore each—to match what investors want.
Economic Affairs Secretary Anuradha Thakur reaffirmed the government's commitment to the fiscal deficit target of 4.4% of GDP.
Why it matters
If you're curious about how India manages its money or why government debt matters for things like jobs or inflation, this is a solid peek into how policies shift behind the scenes—and why those changes could ripple out into everyday life over time.