At Rs 17.2 lakh crore, borrowing overshoots expectations
Finance Minister Sitharaman announced a gross borrowing of Rs 17.2 lakh crore and a net borrowing of Rs 11.7 lakh crore for the government in 2026-27. This could have a negative impact on the market due to a hefty repayment of Rs 5.5 lakh crore in FY27. Market participants predict a rise in bond yields and expect RBI intervention to balance demand and supply.