BUDGET
To borrow INR 3.87 tln from small savings in FY27, up 4% on year
This story was originally published at 13:45 IST on 1 February 2026
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--BUDGET: FY27 borrowing from small savings seen at INR 3.87 tln
NEW DELHI – The government aims to borrow INR 3.87 trillion on a net basis from the National Small Savings Fund in 2026-27 (Apr-Mar) to part-finance its fiscal deficit, up 3.9% from the revised estimate of INR 3.72 trillion for the current financial year. The borrowing from small savings will account for 22.8% of the government's projected fiscal deficit of INR 16.96 trillion in the next fiscal year.
According to the revised estimate, net borrowing from small savings will account for 23.9% of the fiscal deficit for FY26. The FY26 Budget had originally estimated the borrowing from small savings at INR 3.43 trillion.
The net collections from government-run small savings schemes are likely to rise by 5.0% to INR 3.59 trillion in FY27, from the revised estimate of INR 3.42 trillion for the current year. The government had earlier pegged the net collections in the schemes in FY26 at INR 3.06 trillion.
The following are key details of borrowing from and collections of the National Small Savings Fund, in INR billion:
FY27 BE | FY26 RE | FY26 BE | |
Net borrowing | 3,867.72 | 3,721.92 | 3,433.82 |
Fiscal deficit funded (in per cent) | 22.8 | 23.9 | 21.9 |
Net collections | 3,585.79 | 3,415.04 | 3,056.63 |
End
Reported by Krity Ambey
Edited by Saji George Titus
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