BUDGET
Govt makes no provision for gilt buyback in FY26
This story was originally published at 16:37 IST on 1 February 2025
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--BUDGET: FY25 gilt buybacks seen at INR 882 bln
--BUDGET: Gilt buyback seen nil in FY26
MUMBAI/NEW DELHI – The government has not made any provision for buying back government bonds in 2025-26 (Apr-Mar), compared with the revised estimate of INR 881.64 billion for FY25, according to the Union Budget presented by Finance Minister Nirmala Sitharaman in Parliament on Saturday.
So far in FY25, the government has bought back around INR 1.28 trillion worth of gilts, including those maturing in the current financial year, which had no impact on its fiscal deficit but reduced interest payments. Buybacks have totalled INR 881.63 billion for FY26 bonds, across five auctions in October and January.
The government's bond buybacks are set to be a regular affair for the next few years as the Centre faces record high debt repayments in coming years, a finance ministry official told Informist in November. In FY27, the government repayments are set to double from the current financial year to INR 7.02 trillion. End
Reported by Aaryan Khanna and Cassandra Carvalho
Edited by Saji George Titus
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