BUDGET
Net short-term borrowing seen nil in FY26, (-)INR 1.2 tln in FY25
This story was originally published at 14:15 IST on 1 February 2025
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--BUDGET: Net short-term borrowing seen nil in FY26
--BUDGET: FY25 net short term-borrowing revised to (-)INR 1.2 tln
MUMBAI/NEW DELHI – The Budget has projected a nil net short-term borrowing for 2025-26 (Apr-Mar). The revised estimate has projected a net outflow of INR 1.2 trillion from short-term borrowings compared with net outflow of INR 500 billion estimated in the Budget for FY25.
According to the Budget presented by Finance Minister Nirmala Sitharaman in Parliament on Saturday, the government provided for issuing up to INR 500 billion through cash management bills in the next financial year, against the Budget estimate of INR 200 billion for FY25.
Typically, the government has a large net short-term borrowing in the Apr-Jun quarter, before running that down in the remainder of the financial year. For the Apr-Jun quarter, the government had cut its borrowings through the issuances of T-bills as its cash pile increased to nearly INR 5 trillion during the Model Code of Conduct imposed during the General Elections.
The government had cut its scheduled borrowing through T-bills of INR 3.21 trillion by INR 600 billion in Apr-Jun. In Jul-Sep, it cut the scheduled issuance of INR 2.60 trillion by INR 400 billion, with the Reserve Bank of India cancelling the last two auctions in September.
Following are key details of the net borrowing through T-bills. All amounts in INR billion:
| Net Borrowings via T-bills | 2025-26 Budget Estimate | 2024-25 Revised Estimate | 2024-25 Budget Estimate |
| 14 days | Nil | (-)305.46 | Nil |
| 91 days | Nil | 599.00 | (-)192.20 |
| 182 days | Nil | (-)526.76 | (-)302.45 |
| 364 days | Nil | (-) 966.77 | (-)5.35 |
| Total | Nil | (-)1,200.00 | (-)500.00 |
End
Reported by Aaryan Khanna and Cassandra Carvalho
Edited by Saji George Titus
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