New Delhi, Oct. 1 -- The central government's latest borrowing outlook for the second half of current financial year (H2FY26) showed that while the government continues to borrow heavily to meet expenditure needs, it is also taking steps to keep costs stable and spreads manageable, highlighted a report by Bank of Baroda.

The central government has set its gross borrowing target for the second half of FY26 at Rs 6.77 lakh crore, taking the total for the full year to Rs 14.72 lakh crore. This figure also includes Rs 10,000 crore under sovereign gold bonds.

The report stated "The total allocation for 10Y securities has been higher in H2FY26 against H1FY26. Notably, there has been preference for the short term securities as has been evident...