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," a senior government official said, requesting anonymity.
Finance Minister Nirmala Sitharaman is likely to announce details regarding debt reduction in the FY26 Budget.
The Centre expects the debt-to-GDP ratio to come down to 56.8 per cent in FY25 from 58.2 per cent in FY24.
Denne historien er fra December 09, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra December 09, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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