New Delhi: Kerala is set to raise Rs 2,000 crore from the market on July 1, as part of the combined Rs 2.86 lakh crore borrowing planned by States and Union Territories for the July–September quarter of FY26, the Reserve Bank of India (RBI) said.

The RBI finalised the borrowing calendar after consulting with State Governments and Union Territories.

On July 1 alone, ten States are set to borrow a total of Rs 18,100 crore, including Andhra Pradesh (Rs 2,000 crore), Assam (Rs 900 crore), Gujarat (Rs 1,000 crore), Himachal Pradesh (Rs 1,200 crore), Kerala (Rs 2,000 crore), Maharashtra (Rs 6,000 crore), Rajasthan (Rs 500 crore), Tamil Nadu (Rs 2,000 crore), Telangana (Rs 1,500 crore), and West Bengal (Rs 1,000 crore).

Of the gross market borrowing of Rs 14.82 lakh crore budgeted for 2025–26, Rs 8.00 lakh crore—about 54 per cent—is to be raised in the first half through dated securities. These will be auctioned weekly across various maturities: 3, 5, 7, 10, 15, 30, 40, and 50 years.

The borrowing distribution across maturities will be: 3-year (5.3%), 5-year (11.3%), 7-year (8.2%), 10-year (26.2%), 15-year (14.0%), 30-year (10.5%), 40-year (14.0%), and 50-year (10.5%).

Finance Minister Nirmala Sitharaman, in the Union Budget, presented on February 1, pegged the 2025–26 fiscal deficit at 4.4 per cent of GDP, aiming to bring it below 4.5 per cent by the end of FY26. The Centre plans to borrow Rs 15.4 lakh crore from the market in the fiscal year, with a focus on capital expenditure to spur growth without fuelling inflation.