States plan to borrow ₹3.6 lakh crore from October to December 2026
States and Union Territories expect to borrow ₹3,60,820 crore in the October to December quarter. RBI also widens a benchmark scheme to seven more states.
Official title: Indicative Calendar of Market borrowings by State Governments/ Union Territories for the Quarter October – December 2026 · Press Release 2026-2027/1237
What happened
RBI has published the plan for state borrowing in the quarter from October to December 2026. States and Union Territories expect to raise ₹3,60,820 crore, about ₹3.6 lakh crore, by selling bonds. States borrow because they spend more than they collect in taxes and other income. The calendar lists the dates on which states plan to borrow. The actual amounts will be announced two or three days before each auction and depend on what states need, approval from the Centre and market conditions.
RBI is also widening the Benchmark Issuance Strategy (BIS), a plan to make state bond issues more transparent and predictable for investors. It began in April 2026 with nine states and grew in July to include nine more states and Delhi. From October it extends to Assam, Goa, Haryana, Mizoram, Nagaland, Tripura and Jammu and Kashmir. States in the scheme have their calendar in Annex 1; the others are in Annex 2.
Large state borrowing adds to the supply of bonds. When there is a lot of supply, the interest rate states and others must offer can rise. RBI says it will try to space out auctions across the quarter and avoid disrupting the market.
What it means for you
Your state government's borrowing pays for public spending, and the interest is paid from public money. The supply of bonds can affect interest rates on loans over time. If you want to lend to the government yourself, individuals can bid in these auctions through the RBI Retail Direct portal.
What it means for businesses
Banks and funds are the main buyers of state bonds, and they plan their buying around the calendar. Heavy state borrowing can push up bond yields, which can affect what companies pay to borrow.
Links in this release, explained
- RBI press release: state borrowing calendar for Q1 FY 2026-27
The earlier calendar for April to June 2026, where the pilot of the benchmark issuance strategy began with nine states.
www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62496 - RBI press release: state borrowing calendar for Q2 FY 2026-27
The earlier calendar for July to September 2026, which added nine more states and one Union Territory to the benchmark issuance strategy.
www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63029 - Annex 1: borrowing calendar for states and UTs under the benchmark issuance strategy
A table with the planned auction dates and amounts for the states and Union Territory that follow the benchmark strategy. Open it to see when a particular state plans to borrow.
rbidocs.rbi.org.in/rdocs/content/pdfs/PR1237D01102026_A1.pdf - Annex 2: borrowing calendar for the remaining states and UTs
A table with the planned auction dates and amounts for all other states and Union Territories. Open it to see when a particular state plans to borrow.
rbidocs.rbi.org.in/rdocs/content/pdfs/PR1237D01102026_A2.pdf
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.