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Two decades later, small savings return to haunt the Centre

This means, in FY18, govt to pay a disproportionately high interest for borrowings from such savings

Subhomoy Bhattacharjee  |  New Delhi 

To keep the pensioners’ lobby happy, the Centre seems to have taken a retrograde step to manage its borrowings in FY18. It has decided to cut down on cheaper borrowings from the market to instead pick up costlier money from the high-cost National Small Savings Fund (NSSF). This will mean, in FY18, the Centre will pay out a disproportionately high interest for its smaller amount of borrowings.   But the Centre has factored the financial cost, as a necessary political one. In the process, it has overturned a nearly two-decade-long process of reforms in the management of ...

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Two decades later, small savings return to haunt the Centre

This means, in FY18, govt to pay a disproportionately high interest for borrowings from such savings

This means, in FY18, Centre to pay out a disproportionately high interest for its smaller amount of borrowings To keep the pensioners’ lobby happy, the Centre seems to have taken a retrograde step to manage its borrowings in FY18. It has decided to cut down on cheaper borrowings from the market to instead pick up costlier money from the high-cost National Small Savings Fund (NSSF). This will mean, in FY18, the Centre will pay out a disproportionately high interest for its smaller amount of borrowings.   But the Centre has factored the financial cost, as a necessary political one. In the process, it has overturned a nearly two-decade-long process of reforms in the management of ... image
Business Standard
177 22

Two decades later, small savings return to haunt the Centre

This means, in FY18, govt to pay a disproportionately high interest for borrowings from such savings

To keep the pensioners’ lobby happy, the Centre seems to have taken a retrograde step to manage its borrowings in FY18. It has decided to cut down on cheaper borrowings from the market to instead pick up costlier money from the high-cost National Small Savings Fund (NSSF). This will mean, in FY18, the Centre will pay out a disproportionately high interest for its smaller amount of borrowings.   But the Centre has factored the financial cost, as a necessary political one. In the process, it has overturned a nearly two-decade-long process of reforms in the management of ...

image
Business Standard
177 22