ICRA estimates that the stock of state government securities (SGS), the chief source of funding the fiscal deficit of India’s state governments, more than doubled to Rs. 73.0 trillion as on March 31, 2026, from Rs. 32.7 trillion as on March 31, 2020. This was equivalent to nearly 58% of the estimated stock of Government of India securities (G-secs) of Rs. 125.7 trillion as on March 31, 2026. At Rs. 8.3 trillion, Tamil Nadu’s (TN) stock of SGS outstanding was the highest as on March 31, 2026. Additionally, with the SGS outstanding of Maharashtra, Uttar Pradesh (UP), West Bengal (WB) and Karnataka estimated to be at Rs. 5-7 trillion each as of March 2026-end, the combined stock of SGS of these five states was Rs. 33 trillion, or nearly half of the total SGS outstanding of Rs. 73 trillion at the end of March 2026.

EXHIBIT: Stock of G-secs* and SGS issuances

Note: * GoI’s dated securities; Source: RBI; ICRA Research