Apart from the deceleration in government spending, higher direct tax collections and a likely sharp rise in issuances of Treasury Bills by the Centre in FY24 were factors pushing up the government s cash balances, analysts said. The flow of government cash balances to and from the banking system is a key factor that influences liquidity conditions.
Apart from the deceleration in government spending, higher direct tax collections and a likely sharp rise in issuances of Treasury Bills by the Centre in FY24 were factors pushing up the government s cash balances, analysts said. The flow of government cash balances to and from the banking system is a key factor that influences liquidity conditions.