India has been walking a tightrope — and doing it well. Even as the economy stretches and grows, the government’s borrowing remains remarkably well-managed. A recent SBI report highlights how net borrowings are being kept firmly in check, with fiscal discipline guided by the FRBM (Fiscal Responsibility and Budget Management) Act. As the report put it: “G-sec borrowing trend… Keeping the borrowings in check.” The government isn’t just borrowing more — it’s borrowing smarter.
FY26: Big Numbers, Clear Strategy
Let’s talk numbers. For FY26, gross market borrowing through government securities (G-secs) is estimated at ₹14.8 lakh crore. Net borrowing? ₹11.5 lakh crore. So far, the government has raised ₹3.2 lakh crore gross and ₹2.4 lakh crore net — right on track. Compare that to last year: ₹14.0 lakh crore gross, ₹10.7 lakh crore net. And in FY24? ₹15.4 lakh crore gross, with net again at ₹10.7 lakh crore. The trend’s clear — the government is borrowing what it needs, without going overboard.
Debt Is Rising — But So Is Control
Yes, the total stock of debt has gone up. Back in FY15, it was ₹41.6 lakh crore. Fast-forward to FY26, and it’s reached ₹114.5 lakh crore. But here’s the key: it’s been a steady rise, not a reckless one. The SBI report points out that the government is handling this increase with caution and long-term thinking. Big investments need big funding — but every move is being calculated and cautious.
Debt-to-GDP: On the Right Track
Good news on the macro front. The debt-to-GDP ratio is expected to come down — from 57.1% in FY25 to 56.1% in FY26. That’s not just a number; it’s a sign that India is keeping its debt in proportion to its growth. The SBI report attributes this to smart tools like debt switches and buybacks. These allow the government to reshape and fine-tune its borrowing without piling on new pressure.
So how does the government keep things smooth? Through switch borrowings and buybacks. ₹2.5 lakh crore is budgeted for switches in FY26, and ₹0.5 lakh crore has already been used in buybacks. These financial tools help the government restructure existing debt and manage liquidity, without creating panic or chaos in the markets. It’s like refinancing your home loan — but on a national scale.
Short-Term vs Long-Term: Playing the Long Game
The report also highlights a tricky balance — issuing more short-term debt helps with quick funding but can cause a cash crunch later. That’s why long-term thinking is key. While short-term papers keep the engine running, it’s the structured strategy that ensures things don’t go off track later. According to SBI, India’s borrowing strategy may be bold, but it’s built on a strong foundation.
(With Inputs From ANI)
