Days after the Reserve Bank of India announced a record ₹2.69 trillion surplus transfer, the government has announced a ₹250 billion buyback of government securities aimed at reducing its short-term debt obligations. The buyback, scheduled for Thursday via auction, will be conducted by the Reserve Bank of India and will cover five bonds maturing in 2026–27.The timing of the announcement underscores the government’s intent to deploy its unexpected fiscal windfall towards strengthening public finances. Although the Union Budget for 2025–26 did not include any provision for gilts buybacks—unlike the ₹881.64 billion conducted in 2024–25—the record surplus transfer has now enabled the government to take this proactive step. By using part of the surplus to retire outstanding debt before maturity, the Centre is reducing its liability burden and improving its fiscal position. Government securities worth ₹6.48 trillion are due for maturity in 2026–27.
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