Centre may halt Sovereign Gold Bonds issuance from FY26 to reduce govt debt

Scheme said to have outlived its purpose of reducing physical gold imports

This report has been updated  With an increased emphasis on reducing government debt, the finance ministry is considering

 

discontinuing the issuance of Sovereign Gold Bonds (SGBs) from the next financial year (2025-26).

 

“The government is obligated to repay SGB investors the gold-equivalent value at maturity, which increases the government's liability. The regular payment of interest also adds to the

 

government’s fiscal burden. Now that the government has decided to sustainably bring down the debt-to-GDP ratio from FY27, there is no reason why such a scheme should be continued. It has also outlived its initial purpose of reducing physical gold imports,”