Cock and bull story : Chidambaram slams FM after RTI on revision, rollback of interest rate Just as I had said, the decision to lower the interest rates on small savings instruments with effect from April 1, 2021 was not an inadvertent error as was claimed by the FM. It was a conscious decision, said P Chidambaram
BusinessToday.In | May 21, 2021 | Updated 13:55 IST
Chidambaram slams Sitharaman over interest rates
Former Finance Minister P Chidambaram slammed the government for announcing lower interest rates on small savings schemes on March 31 and reverting on April 1, barely 12 hours apart. The Congress leader said that the inadvertent error as said by Finance Minister Nirmala Sitharaman while rescinding the order is a cock and bull story . He said that the decision obviously came from a superior authority .
Starting April, govt should not fool itself on small savings rate
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Most interest rates, including those of government bonds, have fallen steeply over the past one year. But since small savings schemes are administered rates, these have been kept unchanged. (Photo: AFP)
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Receipts from small savings securities funded as much as 26% of the fiscal deficit in FY21
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This was a circular the government could have slept over. The finance ministry issued a circular announcing steep interest rate cuts on small savings schemes on Wednesday night. The next morning, finance minister Nirmala Sitharaman tweeted that the circular was issued by “oversight and that interest rates stand unchanged.