Eight state governments and one UT raised Rs. 301 billion through SGS on January 6, 2026, which is in line with the amount initially indicated for this week. Andhra Pradesh, Karnataka and Tamil Nadu have borrowed Rs. 60-65 billion each in this weekly auction, accounting for a sizeable 61% of the auction amount. 

The RBI has pegged the gross SGS issuance at a high Rs. 5.0 trillion for Q4 FY2026, implying a YoY expansion of ~9% from Rs. 4.6 trillion in Q4 FY2025. The actual borrowings in Q4 FY2026 may differ from the indicated levels due to several factors like tax devolution, capital expenditure trends, transfer of capex loan by the GoI to the states. Moreover, some states could have included the amount remaining to exhaust their full-year borrowing limit for FY2026 in their Q4 indicated amount and/or unutilised borrowings, if any, of the 15th Finance Commission’s award period (FY2022-FY2026) as the same cannot be carried forward to future years.

EXHIBIT: Indicated and actual SGS issuances in FY2026 so far

Source: RBI, ICRA Research