Is The Government Facing A Cash-Flow Mismatch… Again?

Four months into the financial year, the central government appears to be facing a short-term cash flow mismatch. Apart from scheduled borrowings, the government has increased the limit on advances from the RBI and is resorting to raising short-term funds via cash management bills.

On Tuesday, the government raised Rs 20,000 crore via an auction of cash management bills with a maturity of 70-days, according to the auction result notified by the Reserve Bank of India. Since the start of this fiscal, the government has already borrowed four times using this instrument, which is typically used to tide over short-term cash flow mismatches.

On June 4, the government raised Rs 20,000 crore via 21-day CMBs.

Head In Ass Supporter Comments on July 11, 2018 in Politics.
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