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Shift to new tax regime, steady rates affect collections
India has projected gross market borrowing at 15.43 trn Indian rupees ($185.88 bn) for the fiscal year ending on March 31, of which it plans to borrow 8.88 trn rupees between April and Sept
The interest rate for SCSS was increased to 8.2% from 8%, and that of the monthly income scheme was increased to 7.4% from 7.1%
Rate on National Savings Certificate steeply raised by 70 bps, PPF kept unchanged
The interest rate on the Public Provident Fund has yet again been kept unchanged at 7.1%
Bonds have since pared their gains, with the budget math increasingly looking daunting as commercial interest rates soar tracking a tight monetary policy
Small savings rates for 1-year time deposit (6.6 per cent), 2-year time deposit (6.8 per cent) and 3-year time deposit (6.9 per cent) were raised by 110 bps
Rick talks about clients relating to him better because he had the courage to display his vulnerability and talk about the lessons learnt from his mistakes
National Savings Certificate, Public Provident Fund rate kept unchanged
If this happens, it will be the 10th straight quarter of status quo; govt official says Centre did not cut rates when policy rates were being cut during pandemic
Maharashtra has also seen an increase in net collections in recent years
Investors who want to avoid their long lock-in can choose from a host of other high credit quality options
While govt's market borrowings have doubled from FY16 to FY22, NSSF loans to finance fiscal deficit have grown 11x
However, do so only if your asset allocation requires you to invest more on the debt side, and you are comfortable with the long lock-in
Costlier loans from NSSF, at 7.4% interest rate, will occupy more than 10% share in govt's outstanding public debt soon, all to give the small saver a higher interest rate than the market
A record, this is 25% more than last year, and 130% more than the average of the past five years
Collections by small savings schemes crossed Rs 1 trillion in April-September for the first time
Indicative of a possibility that people redeemed their savings for consumption after a likely loss in incomes
As cash is priority, you can delay payment. But there will be loss in interest income
Bond yields will also be under pressure due to Rs 2.7 trillion of switches in FY21, which increases duration risk