A six-week national election has delayed government spending and higher tax revenues have left it with surplus cash which it has been looking to reduce by buying bonds from the marketThe Indian government is open to buying back more bonds and cut borrowings through treasury bills as part of its short-term cash management, a source familiar with the matter said on Tuesday. A six-week national election has delayed government spending and higher tax revenues have left it with surplus cash which it has been looking to reduce by buying bonds from the market. Over the past three weeks, along with buyback announcements, the government has also cut back on planned treasury bill borrowings for the next six weeks. The source said it would look at buying back more bonds in the coming weeks. Bond buybacks are also expected to help perk up banking system liquidity, which is facing an average deficit of 1.2 trillion rupees so far in May.

Source: bd News24 May 22, 2024 02:03 UTC