Govt balances with RBI decline

With the government increasing expenditure on payments to contractors for projects, its balances with RBI fell by Rs 16,346 crore in the week ended January 1.

According to RBI data, the government’s balance with the central bank stood at Rs 37,193 crore as of January 1. In the previous week, strong advance tax and excise duty collections led to a Rs 5,145-crore increase in the balance.