The Yogi Adityanath government in Uttar Pradesh has estimated its market borrowings in the financial year 2025-26 to touch Rs 6.43 trillion.
Although market borrowings would increase in absolute terms, it reflects a downward trend when marked up to UP’s estimated Gross State Domestic Product (GSDP) in 2025-26.
The market borrowings of Rs 6.43 trillion are 20.89 percent of UP’s GSDP projected at Rs 30.77 trillion in 2025-26 compared to Rs 5.96 trillion per the revised budgetary estimates for 2024-25.
The decline in the market borrowings curve shows a robust tax and non-tax kitty of the Yogi government.
States raise market funds to meet expenditure requirements by floating government securities (G-sec) and bonds.
RBI regulates market borrowings to facilitate fiscal prudence and ensure the funding comes at lower costs and minimum risk.
G-sec/bonds are issued through a bidding process conducted by the RBI with primary participants comprising banks, dealers and financial institutions.