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Informist, Sunday, Feb. 1, 2026

--Econ secy: Don't think mkt borrow is on the higher side 

--Econ secy: Higher gross mkt borrow because FY27 repayments are high 

--Econ secy: Have a plan to manage high FY27 repayments 

--Econ secy: To decide on gilt switches, buybacks closer to redemption 

NEW DELHI – The government's gross market borrowing of INR 17.20 trillion for 2026-27 (Apr-Mar) is not "on the higher side", Economics Affairs Secretary Anuradha Thakur said Sunday. The gross borrowing number is seen rising next year mainly because of higher repayments, while net market borrowing is seen similar to the last few years, Thakur said. 

"On borrowing, no, we don't think it is on the higher side. The net market borrowing is in the range of (INR) 11.73 (trillion), around the number it has been over the last couple of years," Thakur said at a post-Budget press conference. "To that extent, we don't think it's a large number. We have a plan on how to manage this (market borrowing)," Thakur said. 

The government lowered its gross market borrowing estimate for FY26 to INR 14.61 trillion from INR 14.82 trillion in the Budget estimate. On net basis, the government will sell bonds worth INR 11.73 trillion in FY27. Gross market borrowing is higher because of the scheduled INR 5.5 trillion worth of repayments in FY27. According to an Informist poll, the government was seen targeting net issuance of dated securities at INR 11.60 trillion in FY27 and a gross market borrowing of INR 16.30 trillion.

Asked if the government will look at gilt switches, including the Reserve Bank of India, and buybacks to lower the repayment burden for FY27, Thakur said such decisions will be taken closer to redemption of those bonds.

According to Budget documents, the government aims to switch INR 2.50 trillion worth of bonds in the next fiscal year, higher than the revised estimate of INR 1.64 trillion for FY26. Government bond buybacks have been pegged at nil for FY27 in the Budget against INR 867.75 billion in FY26.  End

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

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