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Govt increases reliance on costly small savings to fund India Budget


Govt increases reliance on costly small savings to fund India Budget
Graphic: Bloomberg
Jeanette Rodrigues
, Bloomberg
The govt estimates it will borrow about ₹5 trillion in the year through March 31 from this pool meant to support households and pensioners, double the ₹2.5 trillion initially budgeted
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Prime Minister Narendra Modi’s government is increasingly tapping citizens’ small savings to fund India’s budget plans, a costlier method as traditional avenues face a glut of debt.
The administration estimates it will borrow about ₹5 trillion ($69 billion) in the year through March 31 from this pool meant to support households and pensioners, double the ₹2.5 trillion initially budgeted. Even that’s a steep rise from almost nothing under previous governments. ....

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