The central government has announced a plan to raise ₹3.84 lakh crore through short-term treasury bills (T-Bills) to meet short-term funding needs in the fourth quarter (Q4) of financial year 2025-26. The Finance Ministry said in a statement issued on Monday (December 29) that this borrowing will be done over 12 weeks, with weekly auctions ranging between ₹29,000 crore to ₹35,000 crore.
According to the Finance Ministry, the proposed amount is ₹10,000 crore less than the ₹3.94 lakh crore raised in the same quarter of the last financial year. The government had already released the auction calendar of treasury bills worth ₹2.47 lakh crore for the third quarter (Q3) of the current financial year, ending December 31, 2025.
The statement clarified that the government will have the flexibility to change the amount and time frame of the auction in consultation with the Reserve Bank of India (RBI). This flexibility can be exercised depending on the actual funding needs of the Government, changing market conditions and other relevant factors. The ministry said that reasonable advance notice of any such change will be given to the market.
The government also underlined that the announced calendar is subject to change as per the circumstances. For example, the auction schedule may be amended due to intervening holidays or other administrative reasons. According to experts, keeping the level of short-term borrowing relatively controlled in Q4 reflects the government’s cash-flow management strategy. Lower borrowing compared to last year indicates that the government does not want to put unnecessary pressure on interest rates and liquidity while keeping short-term liabilities balanced.
Treasury bills generally have 91-day, 182-day and 364-day maturities and are issued to meet the short-term financial needs of the government. Their auctions are conducted by RBI and banks, primary dealers and other institutional investors participate in them.
The Finance Ministry says the government will keep a close eye on market conditions and make adjustments to the borrowing plan if necessary. According to policy-makers, this approach will help maintain financial stability and manage government borrowing smoothly.
Also read:
Krishna-Godavari gas dispute: Indian government claims more than $30 billion compensation from Reliance Industries and BP
India ranks third in reserves of rare minerals, but has less than 1% share in global production.
No evidence of racial discrimination in murder of Tripura youth Anjel: Police
Comments are closed.