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Government borrowing from small saving account inflates by 20.9% in FY18

Small Savings

Small SavingsGovernment borrowing from the small savings schemes account has reported a sharp increase in the last five years.

According to the Reserve Bank of India (RBI), the Centre borrowed Rs 1,002 billion from small savings schemes in Financial Year 2018-19, which is 20.9 per cent higher than Rs 904 billion reported in the previous Financial Year.

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However, the contribution of market borrowing was at a 17-year low year in 2017-18.

RBI data reveals that small savings schemes namely post office deposits, National Savings Certificate (NSC), and Kisan Vikas Patras (KVP) contributed to a little over a fifth (20.9 per cent) of all central government borrowing during Financial Year 2018-19. This growth is the higher contribution reported from small savings in the last 19 years.

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